Bank overdraft fees may soon plummet. Here's what to know.
ABC News
Overdraft fees could fall from $35 to as low as $3 under a proposed rule.
Tens of millions of Americans who overdraft on their bank accounts each year may soon enjoy major relief.
The government agency in charge of protecting consumers' finances introduced a new rule to rein in overdraft fees charged by banks.
Americans paid a total of nearly $300 billion in overdraft fees over the past two decades, including $9 billion last year, the Consumer Financial Protection Bureau told ABC News in a statement on Wednesday.
Typically, large banks charge $35 per transaction in the event of an overdraft. The proposed rule could drop that charge to as low as $3, the CFPB said.
"This is about the companies that rip off hard-working Americans simply because they can," President Joe Biden said in a statement about the proposed rule.
