{"id":136298,"date":"2024-12-12T20:08:10","date_gmt":"2024-12-12T13:08:10","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=136298"},"modified":"2024-12-12T20:08:10","modified_gmt":"2024-12-12T13:08:10","slug":"cfpb-announces-rule-limiting-bank-overdraft-fees","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=136298","title":{"rendered":"CFPB announces rule limiting bank overdraft fees"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107310267\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Rohit Chopra, director of the CFPB, testifies during a House Financial Services Committee hearing on June 14, 2023.<\/p>\n<p>Tom Williams | Cq-roll Call, Inc. | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The <a href=\"https:\/\/www.consumerfinance.gov\/\" target=\"_blank\" rel=\"noopener\">Consumer Financial Protection Bureau<\/a> on Thursday announced the final <a href=\"https:\/\/www.consumerfinance.gov\/rules-policy\/final-rules\/overdraft-lending-very-large-financial-institutions-final-rule\/\" target=\"_blank\" rel=\"noopener\">version<\/a> of a <a href=\"https:\/\/files.consumerfinance.gov\/f\/documents\/cfpb_overdraft-regulatory-text-and-commentary_2024-12.pdf\" target=\"_blank\" rel=\"noopener\">rule<\/a> limiting banks&#8217; ability to charge overdraft fees. It says the rule will save American consumers $5 billion annually.<\/p>\n<p>The regulator said that banks could opt to charge $5 for overdrafts \u2014 a steep drop from the average fee of around $35 per transaction \u2014 or limit the fee to an amount that covers the lenders&#8217; costs, or charge any fee while disclosing the interest rate of the loan.<\/p>\n<p>&#8220;For far too long, the largest banks have exploited a legal loophole that has drained billions of dollars from Americans&#8217; deposit accounts,&#8221; CFPB Director Rohit Chopra said in a <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-closes-overdraft-loophole-to-save-americans-billions-in-fees\/\" target=\"_blank\" rel=\"noopener\">statement<\/a>. &#8220;The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they&#8217;re charging on overdraft loans.&#8221;<\/p>\n<p>While overdraft fees have been a l<a href=\"https:\/\/www.cnbc.com\/2024\/02\/09\/jpmorgan-chase-wells-fargo-cut-overdraft-revenue-to-2-billion-in-2023.html\">ucrative<\/a> line item for the industry, generating $280 billion in revenue since 2000 according to the CFPB, banks&#8217; revenue from the service has been on the decline. That&#8217;s because lenders including <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><a href=\"https:\/\/www.cnbc.com\/quotes\/JPM\/\">JPMorgan Chase<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/BAC\/\">Bank of America<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> have either reduced the fees or limited the types of transactions that trigger them, while some banks dropped the fee altogether.<\/p>\n<p>The CFPB rule applies to banks and credit unions with at least $10 billion in assets.<\/p>\n<p>The effort, part of a flurry of <a href=\"https:\/\/www.cnbc.com\/2024\/11\/21\/cfpb-expands-oversight-of-apple-pay-other-digital-payments-services.html\">activity<\/a> from the CFPB in the waning days of the Biden administration, faces stiff opposition from U.S. banking groups that have successfully stymied other efforts from the regulator. For instance, a rule capping <a href=\"https:\/\/www.cnbc.com\/2024\/12\/03\/banks-credit-card-costs-cfpb-regulation.html\">credit card<\/a> late fees at $8 per incident that was set to take effect in May has been held up in federal court.<\/p>\n<p>The CFPB said that its overdraft rule will take effect Oct. 1, 2025, though its ultimate fate is unclear.<\/p>\n<p>Even before the election victory of Donald Trump last month, the fate of the overdraft rule would&#8217;ve been murky, thanks to industry pushback. But Trump is expected to install a new CFPB head next month that is unlikely to support Biden-era efforts to rein in banking activity.<\/p>\n<p>Bank lobbying groups have argued that the overdraft rule, first <a href=\"https:\/\/www.cnbc.com\/2024\/01\/17\/biden-administration-unveils-proposed-changes-to-big-banks-overdraft-fees.html\">proposed<\/a> in January as part of Biden&#8217;s war on junk fees, would reduce access to overdraft services and could send customers to worse alternatives like payday loans.<\/p>\n<p>The Consumer Bankers Association said Thursday it was &#8220;exploring all options&#8221; to push back against the rule.<\/p>\n<p><em>This story is developing. Please check back for updates.<\/em><\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/12\/12\/cfpb-bank-overdraft-fees-rule.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rohit Chopra, director of the CFPB, testifies during a House Financial Services Committee hearing on June 14, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The Consumer Financial &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=136298\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-136298","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/136298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=136298"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/136298\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=136298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=136298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=136298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}