The Consumer Financial Protection Bureau finalized a rule on Thursday to limit banks' overdraft fees, potentially saving U.S. consumers $5 billion annually. The rule allows banks to charge $5 for overdrafts, down from an average of $35, or align fees with lenders’ costs while requiring interest rate disclosure for overdraft-related loans. The rule applies to institutions with $10 billion or more in assets and will take effect next October. It faces opposition from banking groups and uncertainty over enforcement, as a potential Trump-appointed CFPB head in 2025 may not support the Biden-era regulation.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02The Consumer Financial Protection Bureau finalized a rule on Thursday to limit bank overdraft fees,
00:07potentially saving U.S. consumers $5 billion annually. The rule allows banks to charge $5
00:13for overdrafts, down from an average of $35, or align fees with lender costs while requiring
00:18interest rate disclosure for overdraft-related loans. The rule applies to institutions with
00:23$10 billion or more in assets and will take effect next October. It faces opposition from
00:28banking groups and uncertainty over enforcement as potential Trump appointee CFPB head in 2025
00:35may not support the Biden-era regulation. For all things money, visit Benzinga.com slash GSTV.