Released: December 12, 2024

New federal rule limits Overdraft fees at large banks

Source: Madeleine Ngo, N.Y.Times (Paid Registration)

The Consumer Financial Protection Bureau finalized a rule that would limit overdraft charges at large banks and credit unions, a move that federal officials said could help save Americans billions in fees each year.

The rule would cap fees that customers are charged when they spend more money than they have in their bank accounts. Federal officials said large banks could cap their overdraft fees at $5, or set their fees at another amount that covers their costs and losses. Alternatively, they could treat overdrafts as a line of credit and provide similar disclosures, including applicable interest rates.

Whether it will remain in place once President-elect Donald J. Trump returns to power is unclear.

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