The Consumer Financial Protection Bureau is trying to clamp down on overdraft fees issued by the nation’s largest banks.
CFPB Director Rohit Chopra joined Yahoo Finance’s Jennifer Schonberger to discuss the proposed overdraft fee changes, noting they aim to empower consumers to “manage their overdraft loans more effectively,” though the proposals do not eliminate them entirely.
Chopra says banks have displayed “a lot of abuse” around overdraft fees, fueling a “billion dollar bonanza.” He argues these new rules look to “close a longstanding loophole” and force fairer, upfront terms for customers.
While banks “will always look to find profits everywhere they can,” Chopra calls the CFPB proposal “quite reasonable.” Chopra claims the average family that deals with these fees will save about $150 per year, adding public input can help shape strong guardrails against unfair practices while preserving responsible fee structures.
“I don’t want to be in a world where we keep bailing out the largest financial institutions on the planet,” Chopra tells Yahoo Finance, adding, “When they take risks, it should be their shareholders and executives who lose, not the public who bears risk of a financial crisis.”
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The banks have to milk the plebes for every cent they have.
Consumers should have a way to set their account to no overdraft. If there is not enough money in the account the card should be declined. That would prevent a bunch of small transactions from piling up.
Imagine if the federal reserve had overdraft fees.
Of course, because Biden is clearly an “overdrafter”; always spending more than he has. 😉
Biden is such a fool to get his votes up he makes statements he knows he can’t fix just teasing the Americans
And of course, Republicans don’t like this proposal. Reps McHenry and Barr stated that this change would actually harm customers. And when they say customers they really mean their donors.
Overdraft is a privilege and a service. Banks can stop offering that service.
@@MST24 it costs the bank nothing if the funds are balanced out.
@@MST24 also, their systems are advanced enough to just deny the charge up front before customers overdraft. Keep licking them boots.
The big banks pray on the low income consumer with over draft fees, someone who has only 100 dollars in their account and their debit card is used and the bank allows them to use it even when the account is in negative, and they are negative just 1 dollar, the bank hits them with a 77 or 37 fee! it isn’t fair, they should only be allowed to use the money in their account, its a trick and it only hurts the poor folks