Schumer Reveals: THIS WEEK Congress WILL TAKE Final VOTE to Raise ‘JUNK’ BANK Fees—starting WITH Overdraft Fees—from $5 to $35, Costing Consumers Hundreds; Chairs of House Finance & Senate Banking...

Schumer Exposes Final Leg Of Quiet Plan In House Financial Services & Senate Banking To Overturn CFPB Rule Limiting Excessive Bank Fees,That Would Cost New York Households More—Because Most Upstate NY Residents Have Bank Account
Plan To Overturn CFPB Overdraft Fee Rule Would Allow Banks To Extract $5 Billion In Excessive Fees – But, WORSE, Would Open Door To Even More Fees Across NY; Schumer Announces Full Opposition, Urges NY House Republicans To Vote “NO” On Tuesday
Schumer: Quiet Plan To Side With Big Banks Over Families Could Mean A Waterfall Of Fees That Would Drown New Yorkers With More Costs
Amidst the anti-consumer, pro-big bank effort todismantle the Consumer Financial Protection Bureau(CFPB), U.S. Senator Chuck Schumer revealed and exposed the FINAL leg ofCongressional Republicans’ quiet planto raise Americans’ bank fees, that will drive up unwanted fees for millions of Upstate New Yorkers. Schumer explained that Congressional Republicans will try to seal the deal to protect financial special interests with a vote on Tuesday when the House will vote to overturn the Consumer Financial Protection Bureau’s (CFPB) overdraft fee rule that caps most big bank overdraft fees at just $5.
“Republicans’ quiet plan to side with big banks against the little guy and working families could mean a waterfall of fees for Upstate New Yorkers already struggling to make ends meet,”said Senator Schumer. “Working families have been ripped off by abusive bank fees and practices in the past, and the CFPB’s rule is about protecting hard-working families, not charging them more. So I urge my GOP colleagues to reverse course here and reject overturning this overdraft rule to put money back in people’s pockets and out of the hands of big predatory banks. If the Republicans let this one fee fly, a waterfall of fees will follow, and it is New Yorkers that will feel the brunt.”
Schumer railed against this effort because it could hurt middle-class New Yorkers the hardest,given the number of consumer bank accounts in New York, which is higher than the national average. The rule would save upwards of $5 billion in excessive overdraft fees that millions of households pay. Overturning the rule, as proposed by the Republicans, would cost households an average of at least $225 each year, but MUCH more in New York, Schumer emphasized. Schumer said that some banks take billions of dollars a year from families and seniors that can least afford it. He said the banks don’t need to charge fees like this and that this effort to let fees run wild will open the door to even more excessive bank fees across Upstate New York.
Schumer announced his opposition and is sounding the alarm on the clandestine pro-big bank GOP plan. Schumer said that the CFPB’s overdraft fee rule is designed to protect regular people from being ripped off by predatory bank fees. He urged the House Republicans to reject overturning the CFPB’s overdraft rule and to protect hard-working families instead of taking their hard-earned money to benefit big banks quietly and behind their backs.

Last month, House Financial Service Committee Chairman French Hill (R-AR) and Senate Banking Committee Chairman Tim Scott (R-SC) introduced Congressional Review Act (CRA) resolutions to overturn the Consumer Financial Protection Bureau’s (CFPB) rule capping overdraft fees, and the Senate GOP green-lit it last week.
The rule caps most bank overdraft fees at just $5, down from the typical $35 charge per transaction,according to National Consumer Law Center(NCLC). With these fees, banks take billions of dollars a year from families that can least afford it, and the Republican chairmen are moving to give big banks this ability, Schumer explained. Banks, which are already profitable, don’t need to charge these fees and some banks, including Capitol One and Citibank, have completely eliminated overdraft fees and they continue to cover overdrafts. However, other banks take about $1 billion a year in overdraft and nonsufficient funds (NSF) fees, and Wells Fargo is one of the biggest offenders.
The CFPB’s overdraft fee rule stops predatory practices that allow the biggest banks to earn billions in profits from the most vulnerable families and seniors. The rule doesn’t stop big banks from covering overdrafts—it caps fees for “overdraft coverage” at $5 or the bank’s costs. Banks can still offer overdraft lines of credit without any price cap, though they are required to provide the same annual percentage rate (APR) pricing disclosure that credit cards provide and to give people adequate time to repay, NCLC explained.
Schumer explained how the rule helps everyone—especially New York families as New York is more ‘banked’ compared to other states. Schumer explained that by lowering most big bank overdraft fees from $35 to $5, consumers save $5 billion per year, reducing manipulative practices, and increasing transparency and fair competition, according to economists.
“Now that the word is out on Tuesday’s vote, you’ll see the banks, lobbyists, and the people that want to protect the banks’ ability to charge excessive fees start to scramble, and devise a plan to defend it. But it’s indefensible. Who is for excessive bank fees?”Schumer said. “Show me a politician that wants to run an ad on increasing all your bank fees. I am blowing the lid on this disastrous plan and so what happens next? Watch them try to run away from this issue, while siding with big banks over working families and the middle class.”
Schumer warned that other fee increases and gaps in consumer protection could soon follow with:
TheNew York Federal Reserve Bank's Credit Insecurity Indexmay shed light on the number of people with access to mainstream financial services, such as a bank account, who will possibly be exposed to higher fees if Congressional Republicans wipe away this protection.An Upstate New York county-by-county breakdown of percentage of New Yorkers with credit and Credit Insecurity Index Scores for 2023 can be found below:
Capital Region
County
Percentage With Credit
Credit Insecurity Index Score
Albany County
77.4%
22.6%
Columbia County
77.9%
22.1%
Greene County
74.0%
26.0%
Rensselaer County
78.9%
21.1%
Saratoga County
88.8%
11.2%
Schenectady County
81.3%
18.7%
Schoharie County
73.7%
26.3%
Warren County
82.4%
17.6%
Washington County
72.2%
27.8%
Western New York
County
Percentage With Credit
Credit Insecurity Index Score
Cattaraugus County
75.4%
24.6%
Chautauqua County
76.2%
23.8%
Erie County
80.0%
20.0%
Niagara County
83.2%
16.8%
Rochester-Finger Lakes
County
Percentage With Credit
Credit Insecurity Index Score
Genesee County
82.5%
17.5%
Livingston County
76.3%
23.7%
Monroe County
82.1%
17.9%
Ontario County
82.6%
17.4%
Orleans County
70.2%
29.8%
Seneca County
76.0%
24.0%
Wayne County
84.4%
15.6%
Wyoming County
78.6%
21.4%
Yates County
69.5%
30.5%
Central New York
County
Percentage With Credit
Credit Insecurity Index Score
Cayuga County
75.5%
24.5%
Cortland County
69.5%
30.5%
Madison County
79.5%
20.5%
Onondaga County
81.1%
18.9%
Oswego County
79.1%
20.9%
Hudson Valley
County
Percentage With Credit
Credit Insecurity Index Score
Dutchess County
82.30%
17.7%
Orange County
81.50%
18.5%
Putnam County
90.10%
9.9%
Rockland County
86.80%
13.2%
Sullivan County
70.10%
29.9%
Ulster County
78.40%
21.6%
Westchester County
85.00%
15.0%
Southern Tier
County
Percentage With Credit
Credit Insecurity Index Score
Allegany County
65.3%
34.7%
Broome County
74.0%
26.0%
Chemung County
77.2%
22.8%
Chenango County
78.7%
21.3%
Delaware County
73.0%
27.0%
Otsego County
70.85%
29.15%
Schuyler County
77.95%
22.05%
Steuben County
81.2%
18.8%
Tioga County
83.2%
16.8%
Tompkins County
69.6%
30.4%
North Country
County
Percentage With Credit
Credit Insecurity Index Score
Clinton County
74.8%
25.2%
Franklin County
76.8%
23.2%
Hamilton County
85.3%
14.7%
Jefferson County
74.5%
25.5%
Lewis County
78.3%
21.7%
St. Lawrence County
70.9%
29.1%
Essex County
75.05%
24.95%
Mohawk Valley
County
Percentage With Credit
Credit Insecurity Index Score
Fulton County
79.1%
20.9%
Herkimer County
80.7%
19.3%
Montgomery County
74.5%
25.5%
Oneida County
75.4%
24.6%
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