Banks prepare to take on the Biden administration over billions of dollars in overdraft fees
Published 1:19 pm Tuesday, January 16, 2024
NEW YORK (AP) — The Consumer Financial Protection Bureau is expected to propose rules this week that further rein in banks’ ability to charge customers a fee when they overdraw their bank account.
Opponents of the fees often cite the example of a $3 cup of coffee costing someone $40.
The banking industry is gearing up to fight back with a multimillion-dollar marketing and lobbying campaign.
While banks have drastically cut back on overdraft fees in the past decade, the nation’s biggest banks still take in roughly $8 billion in overdraft fees every year, according to data from the CFPB and bank public records.