US Takes Aim at Banks’ Billions of Dollars in Overdraft Fees

A top US consumer watchdog is preparing to make it much harder for banks to charge clients overdraft fees — setting up a clash with financial firms over billions of dollars in annual revenue.

Consumer Financial Protection Bureau officials have privately told industry executives that the regulator will likely unveil its long-awaited plan to crack down in December, according to people familiar with the discussions. The CFPB has been crafting the regulations for months, and most of the details remain secret.

Washington has been clamping down on overdraft charges, which the Biden administration has dubbed “junk fees.” The CFPB, which ...