Banks Hit With Proposed Curbs on Fees for Insufficient Funds (1)

The Biden administration aims to limit banks’ ability to charge fees on transactions they decline to process for nonsufficient funds, a move regulators estimate could save consumers around $2 billion annually.

Banks and credit unions would be barred from charging fees on transactions that are declined instantaneously because the customer doesn’t have enough money in their account under a proposal Wednesday from the Consumer Financial Protection Bureau. The proposal is part of the Biden administration’s campaign against so-called junk fees.

The CFPB says it’s rare for banks and credit unions to actually charge NSF fees when a customer swipes, taps, ...