House of Representatives to Vote on Ending Overdraft Fee Cap

NEW JERSEY - New Jersey Attorney General Matthew J. Platkin has joined a coalition of attorneys general from 24 other states and the District of Columbia in urging the U.S. House of Representatives to reject a resolution that would reverse newly established federal limits on bank overdraft fees.

The joint comment letter opposes a congressional effort to overturn a Final Rule issued by the Consumer Financial Protection Bureau (CFPB) in December 2024. That rule caps overdraft fees charged by large banks—defined as institutions holding more than $10 billion in assets—at $5 per transaction, or alternatively, an amount equal to the actual cost incurred by the bank in providing overdraft protection.

Attorney General Platkin emphasized that the rule represents a necessary measure to keep overdraft fees reasonable and to curb what he described as predatory financial practices. "Most overdrafts are for less than $26 and are repaid within three days," the statement from his office noted. Nonetheless, customers are often charged approximately $35 per overdraft, even for minimal overages, under current policies at many banks.

Despite the CFPB rule, the U.S. Senate narrowly passed a resolution in March 2025 that would nullify the fee cap. Should the House of Representatives approve a companion resolution, it would effectively allow large banks to continue charging these higher fees. In 2023 alone, such fees generated $5.8 billion in revenue for the banking industry.

“New Jerseyans, like the rest of Americans, are already facing rising prices and an uncertain economic future due to the actions of the federal administration over the past 11 weeks,” said Attorney General Matthew J. Platkin. “It is unclear to me why elected representatives would vote against consumers and take the side of the largest banks with billions of dollars in profits.”

This marks another instance of New Jersey's active stance in defending federal consumer protections. In recent years, the state has supported multiple CFPB initiatives, including efforts to regulate digital payment services, investigate student loan debt collection practices, and oppose prior attempts to dismantle or defund the CFPB.

The letter was co-signed by attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, with the Hawaii Office of Consumer Protection also participating in the coalition.

“Overdraft fees have become profit drivers for banks, generating billions in revenue at the expense of consumers,” said Cari Fais, Director of the Division of Consumer Affairs. “Consumers faced with these junk fees are effectively paying extremely high-interest loans that go well beyond the expenses banks incur related to overdrafts. We urge the House to preserve commonsense limits on these fees.”

The House is expected to consider the resolution in the coming weeks.

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