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.
$0 would probably mean there’s no way it sticks.
If the fee is zero, the bank will just stop giving people over deaft which is how it should work anyway.
Only time I over drafted is because of a mistake.
But people also use overdraft as payday loan and these fees target them. So bank will need some fee to enable these “loans”