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.

  • Ensign_Crab@lemmy.worldEnglish
    127·
    10 months ago

    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.

    And they will listen to banks and not the public.

    • naught@sh.itjust.works
      83·
      10 months ago

      Wait so Biden introduces a plan to at LEAST halve overdraft fees and we’re whining before anything even happens? Is it not reasonable to at least take input from the industry you’re regulating? Don’t you want to know how they will respond and what impact they foresee, biased or not?

      • Ensign_Crab@lemmy.worldEnglish
        33·
        10 months ago

        Wait so Biden introduces a plan to at LEAST halve overdraft fees and we’re whining before anything even happens?

        Until it happens, it’s the same as BBB, the minimum wage increase, and the public option. Something Democrats say they want to do. Now they just need an excuse to not do it.

        • naught@sh.itjust.works
          23·
          10 months ago

          The main obstruction to min wage increases and public healthcare is certainly not Dems, right? Who fucked up Obamacare? Who’s repealing child labor laws? What party controls states with min wages at the federal minimum? I agree we shouldn’t count our chickens before they hatch, but one party is supplying the eggs here and the other is stomping on them gleefully…

    • OldWoodFrame
      4·
      10 months ago

      If they only listened to the banks they wouldn’t propose the rule at all.

    • katy ✨@lemmy.blahaj.zone
      31·
      10 months ago

      banks are the ones implementing them and they don’t have to listen to the cdpb, thanks to the supreme court, so it’s best to work with them

    • the post of tom joad@sh.itjust.works
      44·
      10 months ago

      I’ll take your cynicism a step further.

      The bureau with consumer protection in its name didn’t even come up with a zero number. It’s not even in the cards. From the protection bureau… Fuck me