American Banker, February 10, 2022, U.S. consumers stand to save billions from banks’ overdraft reforms
In one of the first efforts to tally the impact of recent overdraft fee reforms, a new analysis finds that changes under way at just five banks could save consumers more than $2 billion annually.
The Pew Charitable Trusts reviewed announcements last month by Bank of America, Wells Fargo, U.S. Bancorp, Truist Financial and Regions Financial to determine how much money each company could forfeit in fees.
The ultimate impact of the changes — both at the five banks Pew studied and elsewhere — will depend on how U.S. consumers respond. In addition to reducing overdraft fees and making it easier to avoid paying the charges, some banks are introducing small-dollar loans that could serve as a substitute for overdrawing a checking account.
