"Biden Administration's Plan: Slashing Bank Overdraft Fees to $3"

The Biden administration has proposed a rule through the Consumer Financial Protection Bureau to slash bank overdraft fees to as low as $3, affecting large financial institutions. The proposed rule aims to close a loophole that has allowed banks to profit from overdraft fees, potentially saving consumers billions of dollars annually. While the proposal has drawn criticism from the American Bankers Association, citing the value of overdraft protections to consumers, the administration argues that high overdraft fees disproportionately impact those living paycheck to paycheck.