The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest effort by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck.

The change could potentially eliminate billions of dollars in fee revenue for the nation’s biggest banks, which were gearing up for a battle even before Wednesday’s announcement. Exactly how much revenue depends on which version of the new regulation is adopted.

Banks charge a customer an overdraft fee if their bank account balance falls below zero. Overdraft started as a courtesy offered to some customers when paper checks used to take days to clear, but proliferated thanks to the growing popularity of debit cards.

  • mosiacmango@lemm.ee
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    11 months ago

    Wow, apparently the biden admin started a very limited pilot program back in 2021. They limited it to cashing checks, money orders, wire transfers and ATM access to prevent Congressional interference. Suprisingly progressive, in a limited way.

    Cant find any new info on this. I assume its ongoing.

        • UnderpantsWeevil@lemmy.world
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          11 months ago

          Idk about that. When conservatives are in office, they tend to open those pocket books wide.

          Bush’s “White House Office of Faith-Based and Community Initiatives” took in and distributed $2.2 billion in social service grants. Since he implemented the office, every subsequent President has expanded its budget and role.

          Conservatives, particularly since Reagan, have tended to swing big. And their liberal successors are stuck maintaining these enormous bureaucracies that they erect, while showing little inclination to do more than their conservative predecessors establish as new precedent.