Bank groups sue the Consumer Financial Protection Bureau over a proposed cap on overdraft fees
Trending News
1 week, 3 days ago

Bank groups sue the Consumer Financial Protection Bureau over a proposed cap on overdraft fees

Associated Press  

Some banks and banking trade groups are suing the Consumer Financial Protection Bureau over a finalized rule that limits overdraft fees banks can charge. The rule is part of President Joe Biden administration’s campaign to reduce junk fees that hit consumers on everyday purchases, including banking services. Under the finalized rule from the Consumer Financial Protection Bureau that was announced on Thursday, banks will be able to choose from three options: they may charge a flat overdraft fee of $5, they may charge a fee that covers their costs and losses, or they may charge any fee so long as they disclose the terms of the overdraft loan the way they would for any other loan, typically expressed as an annual percentage rate, or APR. While banks have cut back on overdraft fees in the past decade, the nation’s biggest banks still take in roughly $8 billion in the charges every year, according to data from the CFPB and bank public records.

Consumer Fees Fee Banks Rule Cfpb Overdraft Fees Overdraft  protection  fee  consumer  overdraft  proposed  financial  sue  services  finalized  consumers  cfpb  banks  groups  rule  fees  cap  bureau

History of this topic

Federal rule bans junk fees hidden in hotel, event ticket prices
6 days, 18 hours ago

Federal rule bans junk fees hidden in hotel, event ticket prices

Salon  

Junk fees hidden in the price of hotels and tickets for live events would be banned under a final rule approved by the Federal Trade Commission on Tuesday. The rule requires certain companies to display the full price of a service or product upfront instead of notifying the buyer of the extra fees at the end of the checkout process. …

The White House is cracking down on overdraft fees
1 week, 4 days ago

The White House is cracking down on overdraft fees

Associated Press  

NEW YORK — The Biden administration has finalized a rule limiting overdraft fees banks can charge, as part of the White House’s campaign to reduce junk fees that hit consumers on everyday purchases, including banking services. Under the finalized rule, banks will be able to choose from three options: they may charge a flat overdraft fee of $5, they may …

Overdraft fees to be limited under new federal rule
1 week, 4 days ago

Overdraft fees to be limited under new federal rule

Salon  

The Consumer Financial Protection Bureau has passed a rule limiting overdraft fees banks can charge, continuing the Biden administration's crackdown on junk fees that affect consumers on everyday purchases. “For far too long, the largest banks have exploited a legal loophole that has drained billions of dollars from Americans' deposit accounts,” Rohit Chopra, director of the Consumer Financial Protection Bureau, …

Overdraft fees would be slashed under new Biden administration rule. What you need to know
1 week, 4 days ago

Overdraft fees would be slashed under new Biden administration rule. What you need to know

LA Times  

If your bank account regularly flirts with negative balances, or you’re just bad at keeping track of your debit card swipes, you’ve probably felt the sting of one of the banking industry’s favorite charges: overdraft fees. Under the overdraft rule, large banks and credit unions would have three options when setting fees: They could charge an amount based on the …

What to know about overdraft fees as the White House cracks down on them
11 months ago

What to know about overdraft fees as the White House cracks down on them

Associated Press  

NEW YORK — The Consumer Financial Protection Bureau has proposed new rules that would lower overdraft fees, with President Joe Biden calling the charges “exploitative.” Currently, the fee for overdrawing a bank account averages more than $26. When there isn’t enough money in an account to cover a transaction or withdrawal, but the bank allows it anyway, the customer is …

Overdraft fees could drop to as low as $3 under new Biden proposal
11 months ago

Overdraft fees could drop to as low as $3 under new Biden proposal

Associated Press  

NEW YORK — The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest effort by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck. “Banks call it a service — I call it exploitation.” …

Overdraft fees could drop to as low as $3 under Biden proposal
11 months ago

Overdraft fees could drop to as low as $3 under Biden proposal

LA Times  

According to research conducted by Bankrate last August, the average overdraft fee was $26.61. The proposed change by the Consumer Financial Protection Bureau could potentially eliminate billions of dollars in fee revenue for the nation’s biggest banks, which were gearing up for a battle even before Wednesday’s announcement. The nation’s biggest banks still take in roughly $8 billion in overdraft …

Bank of America slashes fees for account overdrafts
2 years, 11 months ago

Bank of America slashes fees for account overdrafts

Associated Press  

NEW YORK — Bank of America slashed the amount it charges customers when they spend more than they have in their accounts and plans to eliminate entirely its fees for bounced checks. “This could potentially hundreds of millions of dollars staying in customers’ accounts instead of going toward fees.” It remains to be seen whether the decision by BofA — …

Banks slowly reconsider overdraft fees, amid public pressure
3 years ago

Banks slowly reconsider overdraft fees, amid public pressure

Associated Press  

NEW YORK — The banking industry appears to have overdone it on overdraft fees. Capital One, the nation’s sixth-largest bank, announced last week that it would end all overdraft fees next year. “For many big banks, overdraft fees are still the steady, reliable, predictable, easy revenue that shareholders love,” said Rohit Chopra, director of the Consumer Financial Protection Bureau, in …

Exclusive: Another major financial institution ditches overdraft fees
3 years, 4 months ago

Exclusive: Another major financial institution ditches overdraft fees

CNN  

New York CNN Business — Pressure continues to build over dreaded bank overdraft fees. “But we have not relied upon fees like some other financial institutions have historically.” CEO: ‘It is time to end’ overdraft fees Some lenders are rethinking overdraft fees amid competition from challenger banks that don’t charge them — as well as scrutiny from customers, regulators and …

Banks make billions on overdraft fees. Biden could end that
4 years, 2 months ago

Banks make billions on overdraft fees. Biden could end that

CNN  

New York CNN Business — The banking industry’s $11 billion overdraft-fee gravy train could get derailed if Joe Biden wins the White House. “Overdraft fees are one of the biggest risks to the banking industry under a Biden presidency,” said Nathan Dean, senior analyst at Bloomberg Intelligence. In 2009, when Biden served as Barack Obama’s vice president, regulators announced rules …

Discover Related