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

The Biden administration has proposed a new rule that could reduce overdraft fees to as low as $3, aiming to alleviate the burden on American consumers, particularly those living paycheck to paycheck. The rule, put forth by the Consumer Financial Protection Bureau, would require banks to justify their costs for providing overdraft services and potentially eliminate billions of dollars in fee revenue for major banks. The proposal, which aims to combat what President Biden calls "exploitation" by banks, would apply to financial institutions with over $10 billion in assets and could go into effect in the autumn of 2025, but is expected to face strong opposition from the banking industry.