Democratic State AGs Call on Four Big Banks to Eliminate Overdraft Fees

Source: American Banker (subscription may required)

More than a dozen Democratic attorneys general called on four major banks to scrap overdraft fees, saying they should join a small number of competitors by eliminating the “harmful junk fees.”

The letters to JPMorgan Chase, Bank of America, Wells Fargo and U.S. Bancorp are the latest example of government pressure on overdraft fees — though this time the pressure is coming from individual states, rather than Biden administration regulators.

In the past year, all four of the four banks that were targeted Wednesday have announced changes to their overdraft programs, which will likely substantially reduce revenues they get from the often-criticized charges.