1. United States
2. Texas
3. Letter

I am writing to express my strong opposition to the recent decision by the U.S. House of Representatives to overturn the Consumer Financial Protection Bureau's (CFPB) rule that capped bank overdraft fees at $5. This rule was designed to protect consumers from excessive fees that disproportionately affect lower-income individuals and families. The CFPB estimated that the $5 cap on overdraft fees would have saved consumers approximately $5 billion annually, or about $225 per household that typically incurs such fees. Overdraft fees, which can be as high as $35 per transaction, have been a significant source of revenue for banks, amounting to approximately $8 billion annually. These fees often place an undue financial burden on those who are least able to afford them. Supporters of the repeal argue that the regulation would discourage banks from offering overdraft protection and reduce access to credit. However, this perspective overlooks the exploitative nature of high overdraft fees and the necessity of consumer protections to ensure fair banking practices. I urge you to reconsider support for the repeal of this important consumer protection measure. Upholding the CFPB's rule would demonstrate a commitment to safeguarding vulnerable consumers from predatory financial practices and promoting economic fairness. Thank you for your attention to this critical issue. I look forward to your response and to seeing steps taken to protect consumers from excessive overdraft fees.