"White House Proposes $3 Cap on Bank Overdraft Fees"
The Biden administration has proposed capping bank overdraft fees at as low as $3, aiming to alleviate the burden on American consumers, particularly those living paycheck to paycheck. This move could potentially eliminate billions of dollars in fee revenue for major banks, prompting a looming battle. The proposed rule would require banks to justify their costs for providing overdraft services and potentially standardize fees at $3, $6, $7, or $14. While the largest banks are the primary target, small banks and credit unions are spared. If implemented, the regulations would take effect in autumn 2025, impacting millions of Americans who have been affected by overdraft fees.
