Elizabeth Warren, Bernie Sanders Question JPMorgan Chase, Wells Fargo, Other Banks On Exorbitant Overdraft Fess: Report

Elizabeth Warren (D-Mass.) Bernie Sanders (I-Vt.) and Richard Blumenthal (D-Conn.) have reportedly written to major banks, seeking clarification on the potential impact of the Trump administration’s rollback of a financial regulation.

Banks Face Scrutiny As Trump Reverses CFPB Rule

The Democratic senators have reached out to 25 banks, including JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC), to request details on overdraft fees. These fees are imposed when consumers spend more money than they have in their accounts, Fortune reported. The letter, sent on Tuesday, also highlights the potential impact of the rule that President Donald Trump overturned in May 2025.

The Consumer Financial Protection Bureau (CFPB) — an agency partly shaped by Warren under the Dodd-Frank reforms — finalized a rule in late 2024 aimed at closing a loophole that let banks impose steep overdraft fees. The senators argue that the repeal of this rule could have a significant impact on consumers, particularly those from lower-income backgrounds.

The letter also highlights that CFPB oversight on overdraft practices has already returned nearly $250 million to consumers since 2022. The senators projected that the rule could have saved consumers as much as $3.5 billion each year.

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CFPB Rollbacks Spark New Clash Between Trump, Democrats

The Democratic senators' action is part of a wider legal fight with the Trump administration, which has been rolling back recent CFPB rules — including the open banking regulation that lets consumers share financial data across institutions.

Earlier in June, Warren spoke out against Trump’s tax bill for targeting the CFPB and attempting to cut its funding. She highlighted the bureau’s role in returning $21 billion to cheated Americans and called the bill an “outrageous attempt to shut down the CFPB and attack American consumers.”

Trump’s efforts to dismantle the CFPB have also been criticized for shifting at least $18 billion in costs onto consumers through higher bank fees and canceled restitution.

This move by the Democratic senators to demand answers from major banks is a continuation of their fight against the Trump administration’s financial policies and their impact on American consumers.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.