Nearly a week after a federal judge blocked a cap on “junk fees,” the Consumer Financial Protection Bureau is overhauling overdraft fee regulations for large financial institutions. Under the new regulations, affected institutions must choose one of three options for their overdraft programs: cap overdraft fees at $5; set fees to cover only costs and losses; or comply with standard lending laws, including interest rate disclosures, the release said.
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CFPB unveils overdraft fee regulations for large banks and credit unions
“The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they’re charging on overdraft loans,” CFPB Director Rohit Chopra said in the release.
