US Proposes Rule to Crack Down on High Overdraft Fees (Correct)

The US government unveiled a long-awaited regulation that could slash the biggest banks’ overdraft fee income by as much as $3.5 billion each year.

Under the new rule proposed by the Consumer Financial Protection Bureau in conjunction with the White House, banks would only be able to charge overdrawn customers what it costs for them to break even for covering an overdraft — or abide by a specific cap set by the agency. That would effectively eliminate the average $35 charge customers currently pay for overdrawing their bank accounts. The agency is considering caps of $3, $6, $7 or ...