CFPB's $5 Overdraft Cap Threatens Over 80% of Bank Fee Revenue
The CFPB's new rule caps overdraft fees at $5, versus a current average fee of $27, cutting per-transaction revenue by more than 80%. Banks and credit unions collected roughly $12 billion in overdraft and NSF fees in 2025, a revenue line the CFPB now rates as facing catastrophic, high-likelihood impairment. Investors should watch non-interest income guidance from retail-heavy banks in upcoming earnings calls.
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