How to get overdraft fees refunded

Banks refund overdraft fees more often than people expect, particularly for customers in good standing. Before you escalate, try this:

1. Contact the bank quickly. Call, use secure chat in the app, or visit a branch within a few days of the fee.
2. Be specific. Give the date, the amount, and the transaction that triggered the fee.
3. Explain the cause. A deposit that posted late, a transfer that did not go through, or an unexpected charge.
4. Ask directly. "Can you refund this overdraft fee as a courtesy?" If the first person says no, ask whether a supervisor can review it.
5. Ask about account changes. Linking a savings account for overdraft protection transfers, or turning off debit card overdraft coverage, can prevent the next fee.

The Consumer Financial Protection Bureau lists three options for people who regularly pay overdraft fees: opting out of debit and ATM overdraft coverage, linking a backup account, and using alerts or a different account type. If you opt out of debit and ATM overdraft coverage, a purchase or withdrawal without enough money is generally declined instead of triggering a fee.

A courtesy refund is a favor. A fee that breaks federal rules or your account contract is something the bank should return whether it wants to or not. Look for these problems:

• No opt-in for debit or ATM fees. Under Regulation E, 12 C.F.R. 1005.17, a bank may not charge a fee for paying an ATM or one-time debit card transaction through its overdraft service unless it gave you a separate written notice and you affirmatively opted in. Recurring debits, checks, and ACH payments are not covered by this rule.
• Authorize positive, settle negative (APSN) fees. Your balance was high enough when the purchase was approved, but other transactions posted first and the bank charged a fee when the purchase settled.
• Multiple fees on one item. A declined payment that is resubmitted and triggers a second NSF fee each time. See our overdraft and NSF fee lawsuits page.
• Reordering transactions from largest to smallest to create more overdrafts.
• Fees your account agreement does not allow. Private overdraft cases are often breach of contract claims built on the exact wording of the deposit agreement.

Pull your statements and the deposit agreement in effect at the time. Those two documents are the evidence in almost every overdraft dispute.

On September 28, 2022, the CFPB ordered Regions Bank to refund at least $141 million to customers and pay a $50 million penalty over surprise overdraft fees. In December 2022, the CFPB's order against Wells Fargo, which covered auto loans, mortgages, and deposit accounts, cited overdraft fees charged even when customers had enough money available at the time of the transaction. See our Wells Fargo lawsuit page for related private cases.

The federal picture has since changed. On May 9, 2025, the President signed a Congressional Review Act resolution overturning the CFPB's December 2024 overdraft rule, which would have let banks and credit unions with more than $10 billion in assets charge $5, charge a fee covering no more than their costs or losses, or treat overdraft as a loan subject to lending laws. And the CFPB terminated its November 2024 order against Navy Federal Credit Union on July 1, 2025, waiving any alleged non-compliance. With less federal enforcement, private claims and state regulators matter more.

When a bank charges improper fees to thousands of customers, the usual path to a refund is a class action. These settlements are often automatic, because the bank has records of every fee.

A recent example: in Burns v. TD Bank, N.A. in federal court in New Jersey, customers challenged APSN overdraft fees charged between June 27, 2019 and September 30, 2022. TD Bank agreed to $32,225,000 in total relief: $21,975,000 in payments and $10,250,000 in overdraft forgiveness on closed accounts that still owed money, with class counsel fees of up to 33% of the settlement value. Class members who did nothing received a check or account credit. TD Bank denied wrongdoing.

When a settlement does require a claim form, see how to file a class action settlement claim, and check whether any payment is taxable in do you pay taxes on class action settlements.

How overdraft settlements usually work:

• Payments are pro rata, based on how many improper fees each person paid.
• Current customers often get an account credit, and former customers get a check.
• Some settlements forgive debt on closed accounts, which can also help with collection and credit reporting.

Browse open settlements for current bank fee cases, and see what to do if you have not received a settlement check.

1. Put it in writing. Send a dated letter or secure message listing each fee, why it was improper, and the refund you want.
2. File a complaint with the CFPB at consumerfinance.gov/complaint. The bank is asked to respond, and many complaints end in refunds.
3. Contact the right bank regulator. State-chartered banks and credit unions also answer to state regulators, and national banks to the OCC.
4. Consider small claims court for a handful of fees you can document.
5. Look for a class action. If the bank charged many people the same way, attorneys may already be investigating.

Federal law adds some leverage. Under the Electronic Fund Transfer Act, 15 U.S.C. 1693m, a bank that violates the law can owe actual damages plus $100 to $1,000 in an individual case, and in a class action up to the lesser of $500,000 or 1% of the bank's net worth, plus attorney fees.

If you paid repeated overdraft or NSF fees that you think were improper, a free case review takes about two minutes.