Massachusetts Democrat Elizabeth Warren has called Jamie Dimon the "
The senator sent letters Wednesday to Dimon, Wells Fargo’s Charlie Scharf and Brian Moynihan of Bank of America pushing them to follow the lead of
“Capital One and Citigroup Inc. moved to eliminate these predatory fees,” Warren wrote, according to copies of the letter seen by Bloomberg News. “It is now time for the industry as a whole, and in particular, the major institutions raking in these fees, to follow suit and protect consumers.”
Earlier this year, Citigroup became the first of
The Consumer Financial Protection Bureau found in December that 9% of consumers pay 10 or more overdraft fees a year, accounting for about 80% of that revenue for banks.
The three banks Warren wrote to — JPMorgan, Bank of America and Wells Fargo — made a combined $3.76 billion in overdraft fees last year alone, in an industry where overdraft and nonsufficient-funds revenue totaled more than $15 billion in 2019, according to the
Overdraft-fee revenue dropped during the COVID-19 pandemic, as government stimulus checks helped prop up consumers’ bank accounts and widespread lockdowns cut into spending.
Warren’s letter, which continues a battle she’s been
“In recent months, as several major financial institutions moved to eliminate or reduce overdraft fees, there has been a ‘race-to-the-top’ in establishing more pro-consumer fee policies,” she wrote. “But not all banks fully participated.”