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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 5 days 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 5 days ago* (last edited 5 days ago) (1 children)

H.R.4277 - Overdraft Protection Act of 2021

He started this in 2021. Remember he had to start his 4 years trying to wrangle inflation going buck wild. The guy's not the greatest possible president but he has been working towards shit like this for all 4 years. What we should ask is why did it take so long to pass Congress... Because if the effective start date of a bill occurs during their presidency the Republicans can take credit. Kind of like how Trump changed the sentences of those 3000+ people, and then Biden got the blame by Republicans for pardoning the 1500 left as per the agreement written and signed in March 2020.

[–] RustyEarthfire 4 points 5 days ago (1 children)

why did it take so long to pass Congress

H.R.4277 never did pass Congress; it didn't even make it to a vote in the House. This new policy is coming from the CFPB.

Also Biden did not pardon those 1500; he commuted them to time served.

[–] [email protected] -2 points 5 days ago

Yeah the commuting is what was written up in in the Cares act in 2020.

The point of the first part was that he didn't wait until 2024 to do it.. he's been trying to do it since 2021 and getting road blocked. Why it isn't getting road blocked now? Well it might be to soon to see.. but I suspect it'll go through now