The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest effort by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck.
The change could potentially eliminate billions of dollars in fee revenue for the nation’s biggest banks, which were gearing up for a battle even before Wednesday’s announcement. Exactly how much revenue depends on which version of the new regulation is adopted.
Banks charge a customer an overdraft fee if their bank account balance falls below zero. Overdraft started as a courtesy offered to some customers when paper checks used to take days to clear, but proliferated thanks to the growing popularity of debit cards.
Yes exactly. Either side could incur the risk. The government can set the rules. I prefer when they say the rules to protect people first and companies second.
Should make it so that you can’t overdraft by default. That way people aren’t accidentally fucked over by fees since you can’t overdraft. Give the option to overdraft to those who want to have the option, but then also they are taking the risks.
Penalizing companies accepting cards will needlessly fuck over everyone.
Yup, that would also be a good approach.