The Overdraft Fee Cap Was Repealed — Here’s What’s Left
In December 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule capping overdraft fees (e.g., a $5 flat fee or a cost-based alternative) for banks and credit unions with more than $10 billion in assets, due to take effect in October 2025. It never took effect: Congress overturned it using the Congressional Review Act — the Senate passed the repeal resolution in March 2025, the House in April 2025, and it was signed into law (P.L. 119-10) in May 2025. Under the Congressional Review Act, the CFPB is now barred from issuing a "substantially similar" rule without new legislative authorization. As of mid-2026, there is no federal cap on overdraft fees — this directly contradicts information from 2024–early 2025 that may still be circulating, so don’t assume a fee cap protects you.
What does still apply is Regulation E (the Electronic Fund Transfer Act’s implementing rule, 12 CFR § 1005.11), which governs how banks must handle a consumer’s report of an error — including an unauthorized transaction. This is a real, currently-enforceable federal right, separate from any fee cap: you have 60 days from the date your bank sent the statement showing the error to report it, and the bank generally must complete its investigation within 10 business days (20 for accounts open less than 30 days), provisionally crediting the disputed amount during that window if it needs more time (up to 45 days total).
More broadly, the CFPB’s rulemaking and enforcement activity has been significantly curtailed since 2025 under new leadership, with reported major staff reductions — so expect less federal-level intervention on banking fees generally than in 2023–2024, and check the CFPB’s own site directly for the most current rulemaking status before relying on anything published before 2025. verify current CFPB enforcement posture and any pending rulemaking at consumerfinance.gov
What You Can Recover
The right mechanism depends on whether this is an unauthorized transaction or a fee/service dispute
Unauthorized transaction (Reg E, US)
Provisional credit within 10 (or 20) business days, full resolution within 45 days, if reported within the 60-day window.
Unauthorized transaction (PSD2, EU)
Refund by the end of the next business day after you report it, if reported within 13 months of the debit date.
Overdraft/service fee dispute
No federal cap currently applies (US) — recovery depends on your account agreement terms, goodwill fee reversal requests, or state-level consumer-protection law.
The EU’s Unauthorized-Transaction Rules (PSD2)
In the EU, the Payment Services Directive (PSD2) requires your bank to refund an unauthorized transaction by the end of the next business day after you report it, restoring your account to what it would have been absent the transaction — unless the bank has reasonable grounds to suspect fraud and reports those grounds to the relevant national authority. You must notify your bank without undue delay on discovering the error, and in any case no later than 13 months after the debit date, or you lose this specific right to redress.
A reform package (often referred to as PSD3) reached political agreement between the European Parliament and Council in late 2025, but had not yet entered into force as of mid-2026 — PSD2’s rules are what currently govern. Don’t assume any PSD3 changes (e.g., faster refund timelines) are already in effect. verify current PSD3 status and entry-into-force date before relying on any reported change
What Regulation E Does Not Cover
Regulation E’s strong provisional-credit protections apply specifically to a reported "error" — most commonly an unauthorized electronic funds transfer. A dispute over whether a fee was fairly charged (as opposed to being an unauthorized transaction) is a different kind of complaint, and doesn’t carry the same statutory investigation deadlines — it depends on your account agreement and the bank’s own dispute/goodwill process.
Because the federal overdraft-fee cap was repealed, banks are currently free (subject to their own account agreements and any applicable state law) to set overdraft fees without a federal ceiling — treat any online claim that a federal cap protects you as outdated unless it specifically confirms post-2025 status.
How to Dispute a Bank Fee or Unauthorized Transaction, Step by Step
Identify which category applies first, since the protections differ substantially
Determine if this is an "unauthorized transaction" or a fee/service dispute
An unauthorized transaction (someone else moved money from your account) triggers Regulation E’s (US) or PSD2’s (EU) strong statutory protections. A dispute over whether a fee itself was fair or properly disclosed is a different, weaker category that depends on your account terms.
Report an unauthorized transaction within 60 days (US) or without undue delay, and within 13 months (EU)
Contact your bank as soon as you notice the error — in writing if possible, and keep a copy. The 60-day US window runs from your statement date, not the transaction date, so check your statements regularly rather than waiting to notice a problem.
Confirm you receive provisional credit within the required window
In the US, your bank must generally complete its investigation within 10 business days (or provisionally credit you if it needs the full 45 days). In the EU, refund is due by the next business day. If your bank misses these windows, that itself is a violation you can escalate.
For a fee dispute, ask for a goodwill reversal and check your account agreement
Since there’s no federal fee cap, your best initial leverage is a direct request to the bank (many will waive an occasional overdraft fee for a customer in good standing) and a careful read of your account agreement for any fee-disclosure or cap terms specific to your bank or state.
Escalate to your regulator if the bank won’t resolve it
In the US, file a complaint with the CFPB (consumerfinance.gov/complaint) for Regulation E violations or unresolved fee disputes — even with reduced CFPB enforcement capacity, complaints are still logged and can prompt a bank response. In the EU, escalate to your national financial ombudsman or supervisory authority.
Documents to gather
- Your account statement showing the disputed transaction or fee
- Any written notice you sent the bank and when you sent it
- Your bank’s account agreement / fee schedule
- Records of any prior fee waivers or goodwill adjustments
Timelines and Limitation Periods
The clearest, strongest deadlines apply specifically to unauthorized transactions
These deadlines are for reporting an unauthorized-transaction error under a statutory scheme — a general fee complaint doesn’t carry the same fixed clock, so raise it as soon as possible regardless.
| Jurisdiction | Limitation Period |
|---|---|
| US — Reg E error notice (12 CFR § 1005.11) | 60 days from the statement date showing the error |
| US — bank investigation window | 10 business days (20 for new accounts), extendable to 45 days total with provisional credit |
| EU — PSD2 unauthorized-transaction notice | 13 months from the debit date; notify "without undue delay" on discovery |
| EU — PSD2 refund timing | By the end of the next business day after you report it |
Realistic Outcomes and Caveats
Clean, promptly-reported unauthorized-transaction claims have strong, statutorily-backed outcomes: provisional credit is a real and enforceable right in both the US and EU frameworks described here.
Fee disputes (overdraft fees specifically) are currently much more discretionary in the US, given the repeal of the 2024 federal cap — outcomes depend heavily on your specific bank’s policies and your standing as a customer, not a guaranteed federal floor.
This page can help you identify the right process and deadline, but it cannot predict whether your specific bank will waive a fee or how a regulator will handle an escalated complaint.
Common Pitfalls
Assuming a federal overdraft-fee cap still exists
The Dec 2024 CFPB cap was repealed by Congress in May 2025 — there is currently no federal ceiling on overdraft fees, contrary to information from that earlier period.
Missing the 60-day Reg E window
This runs from your statement date, not the transaction date — infrequent statement checking can cause you to miss the window without realizing it.
Filing a fee complaint as if it were an unauthorized-transaction claim
Only unauthorized transactions get Regulation E’s strong provisional-credit and fixed-timeline protections — a fee-fairness dispute follows a different, more discretionary process.
Not escalating to the CFPB or a national ombudsman
Even with reduced CFPB enforcement capacity in the US, filing a complaint is free and can still prompt a bank response — don’t assume it’s pointless.
Assuming PSD3’s reported changes are already in effect
PSD3 had reached only political agreement, not entry into force, as of mid-2026 — PSD2’s rules are what currently apply in the EU.
Organize Your Banking Fee Dispute
Use the calculator to identify whether this is an unauthorized-transaction claim or a fee dispute, and organize your evidence.
Organize Your Banking Fee Dispute
Use the calculator to identify whether this is an unauthorized-transaction claim or a fee dispute, and organize your evidence.
This stays in your private workspace until you choose a next step. It does not submit a claim on your behalf on its own.
Official and Legal References
US vs. EU: Unauthorized Transactions vs. Fee Caps
Both the US (Regulation E) and EU (PSD2) have real, currently-enforceable rules for unauthorized-transaction refunds, with the EU’s next-business-day standard being faster than the US’s 10-to-45-day window. Neither currently has a federal/EU-wide cap on overdraft fees specifically — the US had one briefly in 2024–2025 before Congress repealed it. Fee disputes fall back to your bank’s own terms and, where available, state or national consumer-protection law.
Frequently Asked Questions
Real edge cases, answered in plain language
I heard overdraft fees were capped at $5 — is that still true?
My bank took more than 10 business days to resolve my unauthorized-transaction claim — is that allowed?
Does Regulation E cover a fee I think was charged unfairly, not a transaction I didn’t make?
Organize Your Banking Fee Dispute
Use the calculator to identify whether this is an unauthorized-transaction claim or a fee dispute, and organize your evidence.