1. United States
2. Utah
3. Letter

I fully support the Consumer Financial Protection Bureau's new rule limiting excessive overdraft fees charged by large banks. For too long, these financial institutions have exploited a legal loophole to drain billions from consumers' accounts through abusive overdraft practices. The CFPB's action will save American consumers an estimated $5 billion annually by capping overdraft fees at $5 or requiring fees to reasonably cover costs. This crackdown on predatory overdraft policies is long overdue. The status quo has allowed banks to charge outrageous fees averaging around $35 per overdraft transaction, disproportionately harming lower-income and vulnerable groups. These excessive fees have generated a staggering $280 billion in revenue for banks since 2000 at the expense of ordinary people. While some major banks have recently reduced overdraft charges, more regulatory action is needed to comprehensively address this detrimental practice. By reining in abusive overdraft fees, the CFPB rule will provide substantial financial relief for millions of Americans. It will also compel banks to be transparent about the true costs of overdraft "loans" by requiring disclosure of the annual percentage rate. This increased transparency will empower consumers to make informed decisions. I urge full support and swift implementation of this crucial consumer protection regulation. It represents a pivotal step toward fairer banking practices and preventing corporations from unfairly profiting off hardworking people through deceptive fees. The CFPB's principled stance puts people over profits and must be upheld.