Joe Biden Plans To Slash Bank Overdraft Fees To As Little As $3
www.huffpost.com
“Banks call it a service,” the president said. “I call it exploitation.”

“Banks call it a service,” the president said. “I call it exploitation.”

The Biden administration unveiled a new rule Wednesday aimed at slashing bank overdraft fees to as low as $3, a move the president said would help end abusive practices by financial institutions.

Under the proposal, banks could continue to charge fees when a customer’s account falls below zero, but either at a price in line with the bank’s actual costs to administer the overdraft or at an established benchmark created by the new rule.

The Consumer Financial Protection Bureau (CFPB) proposed potential fees of $3, $6, $7 or $14 and is seeking feedback from banks and the public on what would be appropriate. Current overdraft fees often push $30 or more, taking a significant bite out of low-income accounts.

  • 🅿🅸🆇🅴🅻@lemmy.world
    1·
    6 months ago
    1. because CC companies incentivize us to do so

    That was my point, yes. Also, see my other comment, I live in Europe where credit lines (we do have the so-called “shopping” cards offering fixed installments for purchases but also overdraft at an ATM) aren’t the norm here and people opening up such an account take it more seriously and pay attention not to overdraft. “Building your credit score” isn’t a thing here. Confusing terms and scum agents promoting those cards do trick people into overdrafting and paying huge monthly interests (30% / year) instead of fixed installments, though.