Hidden or Unfair Bank Fees

CFPB "Overdraft Lending: Very Large Financial Institutions" rule — NOT currently in force

Status note

On May 12, 2025, the President signed a joint resolution passed by Congress disapproving the Final Rule entitled "Overdraft Lending: Very Large Financial Institutions." Consistent with the joint resolution, the Final Rule has no force or effect. The remainder of Regulations E and Z are unchanged and remain in force and effect.

Current status

As of the verification date there is no CFPB overdraft-fee cap or junk-fee rule for very large financial institutions in force; standard Regulation E and Regulation Z protections remain in force.

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FCA Handbook CONC 5C (Overdraft pricing), in force since 6 April 2020

Requirements

CONC 5C.2.1R(3): "The rate of interest that applies to any given balance of arranged overdraft relating to a personal current account must either be zero or the same as the rate of interest that applies to any other balance of arranged overdraft in respect of that personal current account" (a single simple annual interest rate, no fixed daily/monthly fees). CONC 5C.2.2G(1): firms are forbidden from imposing a fee for making available an arranged overdraft facility (unless the credit made available exceeds £10,000). CONC 5C.2.1R(6): unarranged overdraft charges must be structured and presented in the same way as arranged ones (the rate may be lower, but not charged as a separate higher fee structure).

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Payment Accounts Directive 2014/92/EU (PAD)

Requirements

Banks must give consumers a "fee information document" listing fees for the most commonly used services before they sign a contract to open an account, and a "statement of fees" of all charges incurred, free of charge, at least annually. Member States must ensure consumers have free access to at least one independent, up-to-date bank fee comparison website. Under Article 10, when switching accounts within the same Member State, the receiving provider must request the transfer from the old provider within 2 business days of getting the consumer's authorisation, and standing orders/direct debits on the new account must start no earlier than 6 business days after the receiving provider gets the transferred documents.

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