Biden proposed that the overdraft fees be reduced.

U.S. President Joe Biden presented a proposal to significantly reduce the overdraft fees that banks charge consumers, calling these current fees an “exploitation” of the country’s most vulnerable families.

Under the proposed new rules, fees will be reduced by preventing banks from applying hidden fees that inflate the fees consumers have to pay.

Biden noted that for a long time some banks have imposed exorbitant overdraft fees, sometimes as high as $30 or more, especially hitting the most vulnerable Americans as banks increase their profits.

 The president regards this practice as exploitation and seeks to address it with the proposed new regulations.

According to the U.S. Bureau of Consumer Financial Protection (CFPB), overdraft fees could be reduced from the $26 most consumers currently pay to $3.

It is estimated that these measures could save the average American family about $150 a year, which would total about $3.5 billion a year for all consumers in the country.

K. Tovar

Source: Bancaynegocios

(Reference image source: X, @NoaGresiva)

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