Banks will fight the Biden administration over new CFPB regulations that would lower the income from overdraft fees.

Banks are preparing to oppose the Biden administration, as the Consumer Financial Protection Bureau plans to introduce new rules that diminish the ability for banks to charge customers overdraft fees when their accounts fall short of funds. US banks currently receive roughly $8 billion in overdraft fees annually. Critics of such fees argue that they exploit vulnerable consumers, using the example of a $3 cup of coffee costing someone an additional $40 due to overdraft charges.

January 16, 2024
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