2024 CFPB Overdraft Fees Proposed Rule Summary
Updated 05/18/2026
This tool summarizes the CFPB’s Proposed Rule on Overdraft Fees issued January 17, 2024. Some of the key takeaways include:
- This rule would technically apply to financial institutions with more than $10 billion in assets, though those institutions under the threshold should continue to remain abreast of any changes in this area in the event the scope were to expand in the future.
- The proposed rule would apply credit protections to overdrafts that are not exempt; i.e., “covered overdraft credit.”
- The proposed rule would allow what it calls “courtesy overdraft,” where fees do not exceed the institution’s costs and losses.
- The proposal would provide two options for this exception—calculating costs using a “breakeven standard” or relying on a “benchmark fee” set by the CFPB.
- Comments are due April 1, 2024, and if adopted, the final rule is expected to take effect on October 1, 2025.
Note: On May 12, 2025, the President signed a joint resolution passed by Congress disapproving the CFPB’s Final Rule, “Overdraft Lending: Very Large Financial Institutions.” As a result, the Final Rule has no force or effect. This summary is provided for historical reference only. The remainder of Regulations E and Z remain unchanged and in effect.
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