"Regulators Propose Ban on Insufficient Funds and Declined Transaction Fees to Protect Consumers"
The Biden administration is targeting financial institutions' practice of charging fees to customers who are denied purchases due to insufficient funds. The Consumer Financial Protection Bureau (CFPB) has proposed a rule to prevent banks, credit unions, and other institutions from immediately denying a transaction for insufficient funds and then levying a fee on top of that. The CFPB aims to stop the charging of fees after denying a transaction for insufficient funds, despite the fact that such fees are currently uncommon. Critics in the financial sector have pushed back against the administration's efforts, questioning the need for the proposed rule.