Banks cash in, as overdrawn accounts fill their coffers.

A new report from Accountable.US has revealed that US banks are still making significant revenue from overdraft fees, despite a decrease in the number of fees charged in recent years. The study found that 10 of the largest banks in the country charged customers more than $2.34bn in overdraft fees in the first three quarters of 2023. Overdraft fees are often levied on those with lower incomes, and can create financial obstacles for vulnerable customers, particularly if they occur just prior to receiving a paycheck. The Consumer Financial Protection Bureau is planning a crackdown on banks’ overdraft fees, but industry bodies argue that such regulation could damage the availability of a “critical financial cushion” for those who need it.