ATLANTA — If you’ve ever paid an overdraft fee, you know you can end up in a big financial hole quickly. Those fees were supposed to be capped at five dollars starting in six months until many Republican lawmakers made a push to stop it.
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Many consumers like Zachary Simpson can’t believe any elected official would try to stop this, it impacts Democrats and Republicans.
“I’d like for it to be capped at zero,” Simpson told Channel 2′s Tyisha Fernades.
Back in 2022, Georgia U.S. Sen. Rev. Raphael Warnock started working to lower overdraft fees by pressuring financial institutions and working with federal regulators, and ultimately he pushed the Consumer Financial Protection Bureau to cap the fees at five dollars.
“I’m standing up for ordinary people, this is what I said I would do when I ran for the Senate. The rule is already in place so literally all we’re asking Republicans is let this rule that’s already in place that consumers will enjoy come October stay in place,” said Senator Warnock.
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According to the Consumer Financial Protection Bureau, the average American family pays $225 a year in overdraft fees.
“These are ordinary folks who are just trying to make their dollars work week to week, month to month. They go to work every day and sometimes they check their accounts and banks have found all kinds of slick ways to take their money,” said Warnock.
The Chairman of the Georgia Republican Party Josh McKoon says:
“The recent $5 overdraft fee limitation by the Consumer Financial Protection Bureau (CFPB) raises concerns about regulatory overreach and its impact on consumer choice. Repealing this limit would empower consumers to select overdraft options that suit their needs and encourage banks to innovate and compete, potentially leading to better products and lower costs.
This restriction also threatens smaller banks and credit unions that rely on overdraft fees for revenue, jeopardizing their viability and access to banking services in communities. Instead of imposing limits, we should focus on educating consumers about financial management.
Ultimately, repealing this fee limitation supports personal responsibility and a free market, allowing financial institutions to thrive and benefiting consumers and the economy as a whole.”
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