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 by banks when consumers spend more money than they have in their accounts.
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 authority rooted in the 2008 financial crisis. Since its creation, the bureau has become a lightning rod for conservatives, with Republican lawmakers long seeking to end its funding and restrict its authority.
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 by the Democratic senators on Tuesday targeted the 10 banks that collected the most in overdraft revenue, which they said represents tens of millions of dollars.
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.”
