On October 11, 2023, the CFPB issued a data spotlight highlighting that the majority of NSF fees have been eliminated, saving consumers nearly $2 billion annually. However, some financial institutions still continue to charge these fees, according to the CFPB.
The Bureau recently analyzed the non-sufficient fund (NSF) fee practices of a number of banks and credit unions. The CFPB’s analysis found that:
Nearly two-thirds of banks with over $10 billion in assets have eliminated NSF fees;
Nearly three-fourths of the banks that earned the most in overdraft/NSF fee revenue in 2021, including 27 of the top 30 earners, have eliminated NSF fees; and
Among credit unions with over $10 billion in assets, 16 of 20 continue to charge NSF fees, including four of the five largest.
The CFPB used this analysis to estimate the resulting reduction in NSF fee revenue over the past several years. Based on their analysis, the CFPB estimates that:
Among banks with over $10 billion in assets, 97% of NSF fee revenue has been eliminated;
Among the 75 banks earning the most overdraft/NSF fee revenue in 2021, 95% of NSF fee revenue has been eliminated; and
CFPB estimates that, as a result of the elimination of NSF fees at these banks, consumers are saving almost $2 billion annually on a going forward basis.
The full data spotlight can be found here.