CFPB Closes Overdraft Loophole to Save Americans Billions in Fees

Dec 12, 2024 · WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action to close an outdated overdraft loophole that exempted overdraft loans from lending laws. The agency’s final rule on overdraft fees applies to the banks and credit unions with …

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CFPB Announces Final Rule Closing “Overdraft Loophole” Created …

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Dec 18, 2024 · Under the final rule, financial institutions now have three options regarding overdraft fees: Cap Overdraft Fees at $5 Per Day – Financial institutions may choose to …

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CFPB Finalizes Rule Preventing Overdraft Fee Loophole For Large …

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Dec 30, 2024 · The CFPB estimates that this new rule will provide up to $5 billion in annual overdraft fee savings to consumers. This rule marks a major step in the CFPB’s broader …

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The CFPB Cracks Down On Bank Overdraft Fees With This New Rule

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Dec 12, 2024 · CFPB officials said in January that about 23 million households paid such fees, which generated $12.9 billion in 2019. Banks say they have sharply reduced or eliminated …

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Goodbye Junk Fees, Hello Transparency: CFPB Curbs Overdraft …

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Dec 12, 2024 · Effective Oct 2025, CFPB’s new rule ends overdraft profits. Big banks must cap fees at $5, use cost-basis or fully disclose terms, saving US Americans billions each year.

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FAQs about CFPB Closes Overdraft Loophole to Save Americans Billions in Fees Coupon?

Did CFPB close an overdraft loophole?

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action to close an outdated overdraft loophole that exempted overdraft loans from lending laws. The agency’s final rule on overdraft fees applies to the banks and credit unions with more than $10 billion in assets that dominate the U.S. market. ...

What is the CFPB overdraft rule?

The proposed overdraft rule is part of a continued effort by the CFPB to rein in junk fees and spur competition in the consumer financial product marketplace. In early 2022, the CFPB launched an initiative to save Americans billions in junk fees, which generated more than 80,000 responses from the public. ...

Will CFPB rein in overdraft fees?

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today proposed a rule to rein in excessive overdraft fees charged by the nation’s biggest financial institutions. ...

What has the CFPB done to curb overdraft fees?

The CFPB has taken multiple actions to curb out-of-control overdraft fees and other junk fees prevalent in consumer financial products. The CFPB issued guidance to rein in surprise overdraft fees in October 2022. ...

Will CFPB's new rule end overdraft profits?

Create a free account to share your thoughts. Effective Oct 2025, CFPB’s new rule ends overdraft profits. Big banks must cap fees at $5, use cost-basis or fully disclose terms, saving US Americans billions each year. ...

Why did the CFPB change overdraft policy?

The policy changes followed enforcement and supervisory efforts by the CFPB to root out illegal overdraft practices, such as charging fees to consumers who had enough money in their account to cover the transaction at the time the bank authorized it. ...