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.
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”