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Trump Administration Wants to Let Banks Jack Up Overdraft Fees
The Trump administration is looking to overturn a Biden-era policy that curtailed banks' ability to punish consumers with overdraft fees.
Trump Administration Wants to Let Banks Jack Up Overdraft Fees
The administration’s assault on the Consumer Financial Protection Bureau is turning into a direct attack on consumers
The Trump administration is looking to overturn a Biden-era rule limiting major banks’ ability to penalize customers with overdraft fees, a reversal that has major banking associations salivating at the mouth.
Last week, House Financial Service Committee Chair French Hill (R-Ark.) and Senate Banking Committee Chairman Tim Scott (R-S.C.) introduced legislation to repeal the rule, which eliminated junk fees associated with account overdrafting — capping the penalty at $5 — and gave banks several options to manage overdraft costs without placing an excess burden on consumers.
The Trump administration endorsed the legislation on Monday, with Office of Management and Budget Director and Consumer Financial Protection Bureau Interim Director Russ Vought writing on X that he was “grateful” that the representatives had introduced legislation overturning the rule. “Passing this important legislation will immediately further President Trump’s deregulatory agenda,” he wrote.
At the time the rule was passed, former CFPB Director Rohit Chopra wrote that the directive was expected to “add up to $5 billion in annual overdraft fee savings to consumers, or $225 per household that pays overdraft fees.”



































