Bank overdraft fees targeted @ WH

The cost to overdraw a bank account could drop under a Consumer Financial Protection Bureau proposal to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck. Read more.

Overdraft fees have been a financial bonanza for the banking industry, with the CFPB estimating that banks collected $280B from these fees in the last 20 years. The banking industry is expected to fight the new regulation vigorously to protect its revenue. CFPB research has shown that overdraft fees overwhelmingly impact the poor and households of color. The White House has made the elimination of “junk fees” one of the cornerstones of its economic agenda, while banks have argued that government regulations on overdrafts could cause them to eliminate the service altogether. (The AP 01/18/24) Overdraft fees could drop to as low as $3 under new Biden proposal | AP News