CFPB Finalizes Overdraft Fee Cap Opposed by GOP, Industry (3)

Large US banks will have to cap overdraft fees at $5 — or an amount that covers their costs and losses — under a new consumer protection rule that Republicans vigorously oppose and swiftly drew litigation from the industry.

The US Consumer Financial Protection Bureau unveiled the final rule Thursday as part of the Biden administration’s campaign against the costs known as junk fees. Under the measure, banks and credit unions can still charge overdraft fees but must either cap them at $5 or charge customers an amount that covers a bank’s costs and losses, according to a statement. ...