If the CFPB Can’t Help You, Here’s How You Can Help Yourself

The Consumer Financial Protection Bureau, or CFPB, has returned more than $21 billion to customers since its founding more than a decade ago. This sum includes sizable refunds and fines that banks were ordered to pay for harmful behavior — moving money out of accounts without permission, for example, and then charging fees if an overdraft occurred. But with new leadership at the agency’s helm, it might not continue to be the consumer advocate it once was.

The CFPB was thrown into chaos earlier this year after leaders reportedly ordered employees to end investigations, cancel enforcement actions and even cease work altogether. The agency also recently dropped several high-profile lawsuits.

We don’t know if the CFPB will go dark, but the watchdog appears to be losing its bite.

If no one is there to look out for you, you’ll need to look out for yourself. Here are four ways you can protect your bank accounts and money.

1. Stay ahead of your bank’s rules

The best way to catch unauthorized fees (or any other suspicious activity) is to know what’s supposed to be happening in your account in the first place, says Erin Bryan, a partner at the law firm Dorsey & Whitney in Minneapolis, MN. “Understand your obligations and the bank’s obligations,” Bryan says.

For example, you’ll want to know about minimum balance requirements and when monthly service charges and other fees can be assessed. You’ll also want to know how to avoid fees and understand if there are any account restrictions, such as a limit on the number of online withdrawals you can make each month. Bryan, who is chair of the firm’s Consumer Financial Services Group, says financial institutions have come a long way in writing terms that the average person can understand. But Bryan adds that if something isn’t clear, feel empowered to reach out, ask questions and try to resolve issues directly.

2. Keep tabs on your savings rate

The CFPB has called out banks for misleading customers into thinking they were getting the bank’s highest savings yields, even when they weren’t. (The higher the yield, the faster savings grow.) Your bank can change your rate at any time. You can advocate for yourself by checking your annual percentage yield, or APY, regularly, either online or by calling your bank. That way, you’ll make sure you’re earning the rate you think you should be earning. You’ll also want to make sure the interest deposited in your account is the amount you expect. (You can use NerdWallet’s compound interest calculator to help with the math.) Pro tip: We've found that banks tend to change their interest rates in tandem with the federal funds rate going up or down, so set a reminder to check your rates shortly after the next Fed meeting.

Note that the national average savings rate is currently only 0.41%, according to the Federal Deposit Insurance Corp. The best rates are much higher, and some are still over 4%. If your account earns less than that, try shopping around to see if you can find a better savings account.

3. Keep overdraft fees optional

Overdraft charges can be around $35 a pop, and banks rake in billions of dollars off of them. The CFPB has clawed back millions in unauthorized fees, but even without the agency's help, there are actions you can take to avoid getting charged. Start by deciding if you even want overdraft protection. If you choose to opt out, it may mean a declined transaction, but it also means you can skip the costly overdraft fees. Alternatively, you could set up a backup bank account for a low- or no-cost overdraft transfer.

Maybe the right choice for you is to sign up for your bank’s overdraft program. Consider setting an alert to be notified when your balance drops below a certain amount. Then, you could add more funds or pause spending to avoid the account dipping below zero. Whatever you decide, you’ll know that you are in control.

If you do opt for overdraft protection and get charged an overdraft fee, check your bank’s policy and make sure the fees align with the fine print. You can also ask your bank to waive this charge, especially if it’s a one-time slip-up.

4. Build your own consumer protection team

You might not have a powerhouse federal agency at your disposal, but you’re not entirely on your own. Consider these resources:

• Office of the Comptroller of the Currency. The OCC can help consumers resolve issues with national banks and larger financial institutions.

• FDIC. This agency is known for insuring bank deposits, but it also fields customer complaints.

• National Credit Union Administration. Similar to the FDIC, the NCUA insures deposits for credit union customers, and it also has a process for customers to file complaints.

In addition, your state attorney general’s office may be able to step in if you’ve been wronged. If the situation is dire, you can seek legal remedies. Legal aid organizations may be able to offer low-cost help, Bryan says.