"Biden Administration Proposes Major Cut to Bank Overdraft Fees"

The Biden administration has proposed a new rule to limit bank overdraft fees to as low as $3, aiming to end abusive practices by financial institutions. The Consumer Financial Protection Bureau (CFPB) is seeking feedback on potential fees of $3, $6, $7, or $14, with the goal of curbing the exploitation of low-income accounts. The rule would apply to large banks with at least $10 billion in assets and is estimated to save consumers $3.5 billion annually. However, the proposal may face legal and political challenges from the financial services industry before it can be finalized and implemented.