New Rules Crack Down on Overdraft Fees

(Undated) – New rules look to crack down on “overdraft fees.” According to a recent report out of Washington, the Consumer Financial Protection Bureau is moving to close a loophole it says allowed big banks to rake in massive profits from overdraft fees. Under the new rule, banks with more than ten billion dollars in assets will be given three options, cap overdraft fees at five dollars, set fees to only cover costs and losses, or treat the fees like loans with disclosure of rates and terms. The agency estimates the rule change will save people five billion dollars a year.