New Federal Rule Caps Overdraft Fees to Save Billions
TL;DR
The Consumer Financial Protection Bureau (CFPB) has closed a loophole that allowed large banks to charge excessive overdraft fees without adhering to lending laws. The new rule, applicable to banks and credit unions with over $10 billion in assets, offers options to cap overdraft fees at $5, cover only costs and losses, or comply with standard lending disclosures. This move is expected to save consumers up to $5 billion annually. The rule will take effect on October 1, 2025, as part of broader efforts to eliminate junk fees.
Topics:businessfinance#banking-regulation#cfpb#consumer-protection#finance#financial-institutions#overdraft-fees
- CFPB Closes Overdraft Loophole to Save Americans Billions in Fees Consumer Financial Protection Bureau
- Overdraft fees crackdown: Biden administration sets new rules for banks CNN
- New rule limits bank overdraft fees: What to know Fox Business
- CFPB announces rule limiting bank overdraft fees CNBC
- Overdraft fees could be capped at $5 under new federal rule ABC News
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