US Banks Collect Record $1.6 Billion in Overdraft Fees

US banks collected $1.6 billion in overdraft fees during the third quarter of 2026, marking a 9.4% increase from the previous quarter and the highest level in four years. JPMorgan Chase and Wells Fargo drove much of this growth, together charging $590 million. First-Citizens experienced the largest proportional increase among the 50 largest lenders, with revenue rising 200% since the first quarter of 2025.

This surge follows a shift in regulatory oversight after President Donald Trump signed a resolution in May rolling back a Consumer Financial Protection Bureau rule that would have capped fees at $5. The Trump administration also reduced the CFPB workforce and shifted its priorities away from medical debt and consumer data.

Economists suggest the increase in fees may indicate deteriorating consumer health and weakening economic conditions, noting that inflation-adjusted wages have fallen since April. Following recent midterm elections, Democrats who won control of both houses of Congress plan to scrutinize CFPB enforcement.