New Federal Rule Limits Overdraft Fees at Large Banks – The New York Times

The Consumer Financial Protection Bureau on Thursday finalized rules to limit overdraft fees at major banks and credit unions, a move that federal officials say could potentially save Americans billions of dollars in fees each year. He said there is.

It is unclear whether the system will remain in place after President-elect Donald J. Trump returns to power.

The rule would cap the fees customers can be charged if they spend more money than they have in their bank account. Federal officials said big banks have several options to follow. You can cap overdraft fees at $5, or you can set the fee at a different amount to cover costs and losses. Alternatively, you can treat the overdraft as a line of credit and provide similar disclosures, including the applicable interest rate.

Although many banks are moving to lower overdraft fees, recent research shows they still average about $30 per transaction. Bank interest rate survey.

The rule applies to institutions with assets of $10 billion or more, including about 150 of the country's roughly 9,000 banks and credit unions, and goes into effect in October.

Banking industry groups sharply criticized the rule after the agency proposed it this year. Some industry observers believe that the Trump administration, which took a friendlier approach toward banks during Trump's first term, may try to reverse that policy.

Republican lawmakers could also try to use an opaque law known as the Congressional Review Act to undo that bill and other regulations from the Biden administration. But given Republicans' slim majorities in the House and Senate next year, it's unclear whether they can muster enough support to roll back many of the rules.