Calls for federal regulators to protect all Americans from harmful overdraft fees
WASHINGTON, D.C. – Citigroup (Citi), one of the five largest banks in America, announced yesterday it will end all overdraft fees and non-sufficient fund fees (aka bounced check fees). It is the biggest bank thus far to do this.
Center for Responsible Lending (CRL) Policy and Litigation Counsel Nadine Chabrier issued the following statement:
Overdraft fees kick people when they are down. Their costs are borne by financially vulnerable consumers. These fees disproportionately harm Black and Latino Americans with a bank account. Overdraft fees are also one of the most common reasons people lose their bank account.
Citi’s decision to eliminate overdraft fees is a victory for financial fairness for its many customers. Families that bank with Citi will be more financially secure because of this action.
At the same time, abusive overdraft practices remain a systemic problem. The Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, National Credit Union Administration, and Federal Reserve Board have the authority and obligation to protect consumers, as well as to safeguard safety and soundness, by reining in these fees. Absent meaningful regulatory action, financially vulnerable families will continue to be dragged into the quicksand of relentless overdraft fees.
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