ABA Statement on CFPB Overdraft Report

“The CFPB’s latest misleading press release on its own overdraft survey ignores the fact that overdraft protection fees are clearly disclosed, highly regulated, and provide a service that an overwhelming majority of consumers find valuable. The release also fails to mention several important details from the report including the CFPB's own finding that a significant number of banks no longer charge overdraft and NSF fees, and 74% of consumers surveyed didn't pay any overdraft or NSF fees in the last year.

“A more comprehensive survey would have asked consumers if they appreciate their bank's overdraft protection. A recent Morning Consult survey conducted for ABA shows exactly that.  For the fourth year in a row, 9 in 10 consumers (88%) found their bank’s overdraft protection valuable, and nearly 8 in 10 consumers (77%) who paid an overdraft fee in the past year were glad their bank covered their overdraft payment, rather than returning or declining payment. Sixty-three percent of consumers think it’s reasonable for banks to charge a fee for an overdraft, as opposed to only 24% who think it’s unreasonable. Next time we hope the CFPB recognizes the value Americans say they receive from overdraft programs rather than demonizing a financial product consumers clearly appreciate.”