The Consumer Financial Protection Bureau (CFPB) is set to propose new rules this week that would further restrict the ability of banks to charge overdraft fees to customers. This move comes as part of the Biden Administration's campaign against what they refer to as 'junk fees,' with the aim of curbing practices that take advantage of consumers.
Overdraft fees have long been a contentious issue, with opponents highlighting cases where a small purchase, such as a $3 cup of coffee, ends up costing the consumer $40 or more. Despite efforts by banks to reduce these fees over the past decade, the largest banks in the United States still rake in approximately $8 billion in overdraft fees annually, according to data from the CFPB and bank public records.
