The Consumer Financial Protection Bureau on Wednesday proposed a set of new rules that would slash the fees banks charge customers for withdrawing more than the available funds in their account.
Americans have paid an estimated $280 billion in overdraft fees since 2000, according to data from the consumer watchdog agency.
"For too long, some banks have charged exorbitant overdraft fees — sometimes $30 or more — that often hit the most vulnerable Americans the hardest, all while banks pad their bottom lines," President Joe Biden said in a statement.
Overdraft fees affect some 23 million households in a given year, and the proposed cutbacks would save Americans about $3.5 billion annually, the CFPB says.
Much of that money would theoretically return to the pockets of lower income bank customers: Consumer Reports says 8% of bank customers generate nearly 75% of banks' revenue from such fees.
Persons:
Joe Biden
Organizations:
Consumer Financial, Biden, Consumer