On October 19, 2022, the CFPB published an issue brief regarding how overdraft fees affect economically insecure older adults. According to the CFPB, economically insecure older adults are particularly impacted by overdraft fees because they are often unable to adjust their carefully managed budgets to pay unexpected fees.
The CFPB also said that older adults of color, older women, LGBTQ+ older adults, and retirees are more likely to be economically insecure and may face greater challenges with overdraft fees. Older adults may be more susceptible to overdraft fees for a variety of reasons, including reliance on Social Security benefits, caregiving responsibilities, the loss of a partner, limited access to financial technology, or cognitive impairment. The lack of access to financial technology, reliance on Social Security benefits, and cognitive impairment may increase the risk of overdraft fees for older adults.
Read the CFPB’s release here.
The issue brief can be found here.
