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The Biden Administration is ‘cracking down’ on banks by imposing a $5 cap on overdraft fees, calling them ‘junk fees’ (finance.yahoo.com)

submitted 1 month ago by MicroWave to c/economics

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Summary

The Biden Administration, through the Consumer Financial Protection Bureau (CFPB), is capping overdraft fees at $5, down from $35, starting Oct. 1, 2025.

The move, targeting “junk fees,” could save U.S. consumers $5 billion annually.

The CFPB suggests banks adopt cost-based fees or offer overdraft credit lines while disclosing interest rates.

Industry groups oppose the rule, and its future is uncertain under a Republican-controlled Congress and the incoming Trump administration.

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[–] [email protected] 2 points 1 month ago (1 children)

I'm 50/50 on that. I agree, but it's more complicated in action than just saying "the fee is now zero." This isn't the first time Biden has tried to get rid of overdraft fees. Courts strike it down.

[–] spankmonkey -1 points 1 month ago* (last edited 1 month ago) (1 children)

Courts struck down the ~~antiabortion~~ forced birth legislation for decades until repeatedly failing finally worked out for the religious cultists.

Real change doesn't happen through compromise.

[–] [email protected] 1 points 1 month ago (1 children)

Real change doesn’t happen through compromise.

I get the strong feeling You've never had to negotiate anything important in your life. Idealism is not reality. It's fun to daydream about though.

[–] spankmonkey -1 points 1 month ago (1 children)

"Alwaya start negotiations with your final offer."

-you

[–] [email protected] 0 points 1 month ago

Point proven.