White House Proposes Cutting Big Banks’ Overdraft Fees to $3

The U.S. administration released a long-awaited proposal to adjust how large banks offer overdraft protection coverage to clients. The changes are a part of the White House’s broader efforts to clamp down on so-called junk fees, with President Joe Biden calling them a form of “exploitation.” The Consumer Financial Protection Bureau (CFPB), an independent watchdog agency, unveiled a series of changes to overdraft plans that would only apply to financial institutions with more than $10 billion in assets, affecting nearly 200 banks nationwide. According to the announcement, big banks’ overdraft fees would be slashed to as low as $3, eliminating billions of dollars in annual revenue for these companies....