Exclusive: Democratic senators press big banks after Trump kills consumer protection rule that capped overdraft fees at $5

The future of the CFPB

Leo Schwartz is a senior

As the Trump administration rolls back financial regulation designed to protect American consumers, a group of Democratic senators led

In a letter sent to 25 banks on Tuesday, Warren, alongside Sen. Richard Blumenthal (D-Conn.) and Sen. Bernie Sanders (D-Vt.), requested information on overdraft fees, or charges imposed

The Consumer Financial Protection Bureau, an agency designed in part

The letter comes amid a broader legal fight between Democratic lawmakers and the Trump administration, which has sought to lay off 90% of workers at the CFPB and reverse much of its recent rule-making, including around open banking, or the ability for consumers to transfer their own financial data between different institutions.

While many U.S. regulatory agencies, such as the Securities and Exchange Commission, are focused on supervising major financial institutions, the CFPB is the only body whose primary mandate is enforcing consumer rights, with its

Though opponents of the bureau have faced legal barriers, the Trump administration engaged in a campaign to effectively gut the CFPB

That has included Biden-era rule-making, including provisions related to overdraft fees—one of the bureau’s landmark reforms of the past few years. The letter sent

Democrats have argued that overdraft fees can serve as a form of debanking, or removing access to banks for different types of consumers—a practice that the Trump administration and many of its supporters have tried to end. In Tuesday’s letter, the

The 2024 CFPB rule would have still allowed larger banks to charge overdraft fees, but restricted them (to $5) or alternatively the costs of providing overdraft services, and categorized them under lending laws. Republican lawmakers, such as House Financial Services Committee chair French Hill (R-Ark.), have argued that they don’t want the federal government setting prices.

With the Democrats in the Senate minority, Warren has significantly less power as the ranking member of the banking committee. With Tuesday’s letter, she’s aiming to collect more data on how the rollback of the rule has changed the banks’ approach to overdraft fees.

“Trump’s chaotic, half-baked policies are wreaking havoc on the economy,” the senators wrote. “Raising overdraft fees in the wake of the repeal of this rule would be inexcusable.”