Biden administration unveils proposed changes to big banks' overdraft fees
Publishing timestamp: 2024-01-17 12:52:48
Summary
The Consumer Financial Protection Bureau has proposed new rules targeting big banks' overdraft fee practices. American consumers have paid an estimated $280 billion in bank overdraft fees since 2000. The new rules aim to close a loophole that has exempted overdraft loans from consumer protections. The regulations would apply to banks with more than $10 billion in assets and are expected to be finalized in the coming year. Banking trade groups are opposed to the changes. The proposed rule offers two options for big banks to approach overdraft coverage. The first option treats overdraft loans as credit line loans subject to regulations, while the second option allows banks to continue offering overdraft coverage as a courtesy service with limited fees. The final rule will be published next year.
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Keywords: u.s. economy, financials, regions financial corp, politics, banks, breaking news: politics, business news, products and services, washington, joe biden,