The Consumer Federation of America released this statement in response to the proposed rule released by the Consumer Financial Protection Bureau (CFPB) today to prohibit insufficient funds fees (NSFs) covering transactions that are authorized in real or near real-time, such as one-time debit transactions at the point of sale and ATM withdrawals. 

“We applaud the CFPB for taking this needed step to rein in junk NSF fees,” said Adam Rust, Director of Financial Services for the Consumer Federation of America. “When a bank consciously chooses not to honor a payment request, but still charges a fee, it prioritizes its greed above its customer’s needs and adds insult to injury. It is telling that most banks have stopped charging NSF fees, and revealing that some have not. The CFPB’s rule will force financial institutions that have been dragging their feet on doing away with these junk fees to finally stop their harmful practices.”