The Trump administration overturned a CFPB rule that closed a loophole allowing banks to charge high overdraft fees. Democratic senators Elizabeth Warren, Richard Blumenthal and Bernie Sanders sent letters to 25 banks, including JPMorgan and Wells Fargo, requesting information on overdraft fees and potential consumer impacts. CFPB supervisory actions since 2022 led to nearly $250 million refunded to consumers for overdraft-related harms. The administration has sought to lay off roughly 90% of CFPB staff and to reverse rulemaking on overdraft fees and open banking. The CFPB is the sole federal agency primarily charged with enforcing consumer financial rights since the 2008 crisis. Republican lawmakers continue efforts to limit the bureau's authority and funding.
As the Trump administration rolls back financial regulation designed to protect American consumers, a group of Democratic senators led by Elizabeth Warren (D-Mass.) is demanding answers from major banks, including JPMorgan and Wells Fargo, on the potential impact. In a letter sent to 25 banks on Tuesday, Warren, alongside Sen. Richard Blumenthal (D-Conn.) and Sen. Bernie Sanders (D-Vt.), requested information on overdraft fees, or charges imposed by banks when consumers spend more money than they have in their accounts.
The Consumer Financial Protection Bureau, an agency designed in part by Warren as part of the Dodd-Frank financial reforms, finalized a rule in late 2024 that closed a loophole allowing banks to charge exorbitant overdraft fees. According to the letter sent on Tuesday, since 2022, CFPB supervisory actions related to overdraft fees have led to nearly $250 million refunded to consumers. President Trump signed a Republican-led bill into law in May 2025 that overturned the rule.
The letter comes amid a broader legal fight between Democratic lawmakers and the Trump administration, which has sought to lay off 90% of workers at the CFPB and reverse much of its recent rulemaking, including around open banking, or the ability for consumers to transfer their own financial data between different institutions. The future of the CFPB While many of the U.S. regulatory agencies, such as the Securities and Exchange Commission, are focused on supervising major financial institutions,
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