Biden Administration Enforces New Overdraft Fee Limits for Banks
The Consumer Financial Protection Bureau has finalized a rule to cap overdraft fees at $5 for large banks and credit unions, potentially saving consumers up to $5 billion annually. This move, part of President Biden's crackdown on junk fees, aims to increase transparency and reduce financial burdens on consumers. While banking trade groups oppose the rule, citing potential negative impacts on consumer choice, the rule is set to take effect on October 1, 2025, unless altered by future administrations.
