Banks stopped charging for bounced checks. Richer customers saved money. Poorer ones did not.

Large US banks eliminated non-sufficient funds (NSF) fees and made overdraft policies easier between 2017 and 2022. While NSF fees dropped for everyone, easier overdraft rules only helped wealthier households. These changes did not significantly reduce financial stress for poorer customers.

This study shows that simply changing a few bank fees does not automatically help vulnerable households. Wealthier customers with more liquidity benefited from relaxed overdraft rules, seeing fewer late fees and less reliance on payday loans. However, the policy changes were not enough to lift the financial strain for those with less income or fewer assets.