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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 1 week ago by [email protected] to c/[email protected]

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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] -1 points 1 week ago

Oh thats fine. There seems to be a lot of stuff thats like this sucks, whats the point, it should be better, we should not even be supporting this because better. Certainly we should push for it but its understandable someone in a leadership position will try to get what they view as winnable and then progress to the next step as opposed to going for the whole thing when the end result will be nothing or worse regression. If we regress all of a sudden getting the whole loaf is still behind where we were.