WASHINGTON–The government watchdog group Accountable.US has launched an ad campaign in support of the Consumer Financial Protection Bureau’s proposed rule limiting overdraft fees.
Accountable.US said its new ad campaign comes in response to the Consumer Bankers Association new misinformation website “highlighting the value of overdraft” fees and penalties despite the clear financial harm they inflict on millions of families.
As CUToday.info reported, that rule would limit banking institutions and credit unions to a fee range of $3 to $14 on overdrafts, down from as much as $42.
The digital ads—running throughout February on a network of news sites, entertainment apps, and weather apps in the Capitol Hill area—display the message, “Big Banks Charge Overdraft Fees to Rake in Billions. Be a bank lobbyist's worst nightmare & learn more about their greed.”
‘Notorious’ for Hidden Fees
Clicking the ad takes users to DefendAmericanConsumers.org for what the group says is “information on how the overdraft practice notorious for hidden and high-cost fees is designed to do only one thing: pad financial industry profits on the backs of consumers.”
“Big bank CEOs and the congressional Republicans in their pocket are desperate to convince consumers they should be grateful for price-gouging in the form of high-cost surprise overdraft charges. Anyone who’s paid a $42 overdraft fee or multiple penalties over a $2 item may strongly disagree,” Accountable.US’ Liz Zelnick said in a statement. “Megabank lobbyists don’t want to talk about how they prey most on low-income communities and communities of color, who can afford these junk fees the least. They also omit that many companies that voluntarily ended their overdraft practices remain highly profitable. Bottom line: families are sick of being nickel and dimed with overdraft fees that serve no real purpose other than padding profits, ballooning CEO bonuses, and enriching wealthy investors.”
‘Caught Copying & Pasting’
The organization said House Financial Services Chairman Patrick McHenry and Rep. Andy Barr (R-KY)—"who together have accepted over $1 million from the 10 largest banks still charging overdraft fees”—were caught copy and pasting industry talking points in their public statement “blasting” the Consumer Financial Protection Bureau's rule.
The group said recent efforts by the Biden Administration and the CFPB on fees are expected to save everyday families $3.5 billion every year.