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.

  • RustyEarthfire@lemmy.world
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    6 days ago

    why did it take so long to pass Congress

    H.R.4277 never did pass Congress; it didn’t even make it to a vote in the House. This new policy is coming from the CFPB.

    Also Biden did not pardon those 1500; he commuted them to time served.

    • LifeInMultipleChoice@lemmy.dbzer0.com
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      6 days ago

      Yeah the commuting is what was written up in in the Cares act in 2020.

      The point of the first part was that he didn’t wait until 2024 to do it… he’s been trying to do it since 2021 and getting road blocked. Why it isn’t getting road blocked now? Well it might be to soon to see… but I suspect it’ll go through now