The Biden Administration has proposed a rule to cap overdraft fees at $3 per occurrence, a significant reduction from current levels. This proposal, aimed at alleviating the financial strain on vulnerable Americans, comes as banks like $bac, $wfc, $jpm, $c, and $pnc have collected over $300 billion in overdraft fees over the past decades. The Consumer Financial Protection Bureau (CFPB) is spearheading the effort to limit non-sufficient fund fees, which could save consumers more than $3.5 billion annually. Despite the potential benefits, critics such as Megan McArdle argue that the cap might harm low-income families by pushing them away from regulated financial services. Additionally, concerns have been raised about banks embedding hidden junk fees that can significantly impact consumers' finances.
When companies sneak hidden junk fees into families’ bills, it can take hundreds of dollars a month out of their pockets and make it harder to make ends meet. That's why I support the Biden administration's new proposal that would limit bank overdraft fees to as little as $3! https://t.co/xgPg9NF1ZI
"I’m worried this move might end up hurting some of the very people it’s supposed to help." Limiting overdraft fees could push Americans to pursue riskier options or avoid regulated, low-cost financial products altogether. More 👇 https://t.co/GLfr3DY4Br
Opinion by Megan McArdle: Low-income Americans on the fringes of the banking system might have the most to lose from a proposed federal cap on overdraft fees. https://t.co/a7yzwLkYTO
"Say what you want about the Consumer Financial Protection Bureau’s proposal to limit overdraft fees, it’s political gold," @asymmetricinfo writes. https://t.co/0dY3o6ZDLa
Big Banks use overdraft fees to grow their profits on the backs of hardworking Americans. With a new proposal from the @CFPB, @POTUS is continuing to lower costs by capping overdraft fees and saving consumers over $3.5 billion a year. https://t.co/dMhbx29Rej
Capping overdraft fees could actually hurt poor families, @asymmetricinfo writes. https://t.co/er1UkbKUIS
⚠️ US CONSUMER WATCHDOG PROPOSES RULE CRACKING DOWN ON NON-SUFFICIENT FUND FEES (Reuters) The federal U.S. consumer finance watchdog on Wednesday proposed a new rule cracking down on fees that banks charge consumers when they do not have sufficient funds to cover a purchase or… https://t.co/XKJls0gRgh
Biden admin working on a proposal to limit overdraft fees to $3 per occurrence. Banks 🏦 have collected over $300bn of these fees over the last couple decades $bac $wfc $jpm $c $pnc
ICYMI: Last week, the Biden Administration proposed a rule that would cut the average overdraft fee to as low as $3. This would alleviate the unfair burden put on many vulnerable Americans, especially those living paycheck to paycheck. https://t.co/Nk2COua0gr