By: Richard L. Smith
New Jersey Attorney General Matthew J. Platkin has joined a growing coalition of state officials urging Congress to block a measure that would allow the nation’s largest banks to continue charging steep overdraft fees to consumers.
According to a statement released by the New Jersey Attorney General’s Office, Platkin signed onto a multistate letter addressed to the U.S. House of Representatives, calling for the rejection of a joint resolution that would overturn a federal rule limiting overdraft fees.
The resolution, if passed, would roll back recent consumer protection efforts and allow banks with assets exceeding $10 billion to resume charging overdraft fees averaging $35, even for small transactions.
Overdraft protection, which permits banks to temporarily cover charges that exceed a customer’s account balance, has come under fire for its high costs.
According to consumer data, the majority of overdraft transactions involve less than $26 and are usually resolved within three days, yet banks continue to charge inflated fees. In 2023 alone, banks collected an estimated $5.8 billion from overdraft charges.
In December 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule capping these fees at $5, or at a level that accurately reflects a bank’s cost in providing the service. But in a controversial move last month, the U.S.
Senate narrowly passed legislation to reverse that rule. Now, attention turns to the House of Representatives, where a similar vote could dismantle the consumer safeguards.
“New Jerseyans, like many Americans, are already struggling with the rising cost of living and economic instability,” said Attorney General Platkin. “I cannot understand why lawmakers would choose to side with powerful financial institutions over the interests of working families.”
Cari Fais, Director of the New Jersey Division of Consumer Affairs, also criticized the fees, calling them “junk charges” that unfairly burden everyday consumers.
“These overdraft fees often function as extremely high-interest loans—far exceeding any actual cost to the bank,” Fais said. “The CFPB’s rule introduces much-needed fairness, and we strongly urge Congress to keep those protections in place.”
New Jersey has consistently supported consumer-first policies and efforts to protect the work of the CFPB.
Earlier this year, Platkin helped lead a multistate effort opposing attempts by the Trump administration and Elon Musk to dismantle the agency.
The state also backed CFPB proposals in 2024 to enhance protections for users of digital payment platforms, and in 2022, supported federal actions aimed at halting abusive student loan debt collection practices.
With the House expected to vote soon, consumer advocates and state leaders alike are watching closely to see whether federal lawmakers will prioritize the financial well-being of American families or the profits of major banking institutions.