New Federal Rule Caps Overdraft Fees at $5
TL;DR Summary
The Consumer Financial Protection Bureau (CFPB) has finalized a rule to cap overdraft fees at $5, potentially saving banking customers up to $5 billion annually. This move, part of President Biden's crackdown on 'junk fees,' aims to alleviate financial burdens on consumers, especially those living paycheck to paycheck. While some major banks have already reduced or eliminated such fees, the rule faces opposition from banking industry groups and potential legal challenges. The rule is set to take effect on October 1, 2025, and applies to banks with over $10 billion in deposits.
Topics:business#bankingregulations#bidenadministration#cfpb#consumerprotection#finance#overdraftfees
- Overdraft fees could be capped at $5 under new federal rule ABC News
- Overdraft fees crackdown: Biden administration sets new rules for banks CNN
- CFPB announces rule limiting bank overdraft fees CNBC
- Consumers could see a $5 overdraft fee in 2025 under a final rule — or maybe, not Detroit Free Press
- Consumer protection agency finalizes rule limiting overdraft fees The Washington Post
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