Overdraft fees would drop to as little as $3 under Biden proposal

The Biden administration is proposing a new rule that could limit bank overdraft fees to as little as $3.

The proposed regulation unveiled by the Consumer Financial Protection Bureau in tandem with the White House could potentially cut billions in dollars that large banks earn from bank customers overdrawing their accounts.

"For too long, some banks have charged exorbitant overdraft fees—sometimes $30 or more—that often hit the most vulnerable Americans the hardest, all while banks pad their bottom lines," President Joe Biden said Wednesday in a statement. "Banks call it a service — I call it exploitation."