Feb. 10: CFPB Updates This Week

PUBLISHED FEB 9, 2023
CFPB publishes HMDA Regulatory and Reporting Overview Reference Chart for Data Collected in 2023

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Data spotlight: Banks’ overdraft/NSF fee revenue declines significantly compared to pre-pandemic levels
Third quarter of 2022 is down more than 40% compared to third quarter of 2019, suggesting $5B reduction in fees on annual basis.

Since late 2021, several banks have announced changes to their overdraft programs that have been expected to reduce overdraft/non-sufficient fund (NSF) fee revenue. Our most recent analysis finds that bank overdraft/NSF fee revenue:

• was 43% lower in the third quarter of 2022 than in the third quarter of 2019 before the COVID-19 pandemic onset – suggesting $5.1 billion less in fees on an annualized basis;
• was 33% lower over the first three quarters of 2022 compared to the same period in 2019; and
• has trended downward in each quarter since the fourth quarter of 2021.

At the same time, we have not observed correlating increases in other listed checking account fees, which suggests that banks are not replacing overdraft/NSF fee revenue with other fees on checking accounts.

This analysis of bank call report data follows our previous analyses of trends in checking account fee revenue published in December 2021 and July 2022.

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