Posted on 01/18/2024 8:25:08 AM PST by SeekAndFind
The Consumer Financial Protection Bureau is pushing to reduce the overdraft fees Americans are charged at banks and credit unions when they don’t have enough money in their accounts to cover spending, which could save customers $3.5 billion a year, the latest in a string of crackdowns on fees by the Biden Administration.
If banks choose the flat fee option, that fee would be based on an established benchmark, the CFPB said, noting the agency still has to decide which benchmark—$3, $6, $7 or $14—it thinks is the appropriate amount.
The new rule would apply to institutions with more than $10 billion in assets—which includes some 175 banks and credit unions in the U.S, according to the CFPB.
The agency says the rule would close a loophole that has exempted overdraft loans from consumer protections required by the Truth in Lending Act.
Overdraft loans initially got “special treatment” to make it “easier for banks to cover paper checks” often sent through the mail, CFPB Director Rohit Chopra said, adding that the banks have turned overdrafts into a “massive junk free harvesting machine.”
The CFPB also noted overdraft fees are often $35, even though most consumers’ debit card overdrafts are for less than $26 and are repaid within three days.
(Excerpt) Read more at msn.com ...
it’s cutting into his 10%.
why wouldn’t he do this?
Eliminate the unconstitutional CFPB!
Nothing like getting rich off of irresponsible and poor people.
Same for CC rates on a missed payment.
"Under a new proposed rule, large financial institutions could either charge a flat fee for overdraft payments that aligns with the service’s cost, or provide the same disclosures and protections for overdraft services that are required for credit cards and other loans......" "If banks choose the flat fee option, that fee would be based on an established benchmark, the CFPB said, noting the agency still has to decide which benchmark—$3, $6, $7 or $14—it thinks is the appropriate amount." "The new rule would apply to institutions with more than $10 billion in assets—which includes some 175 banks and credit unions in the U.S, according to the CFPB."
Let's be very clear here "democracy" is nowhere involved in any of this. The CFPB is a rouge agency and should be abolished. If Congress wants to pass particular indiviudal "consumer financial protection" measures it is capable of doing so. With Elizabeth Warren's brainchild we got another deep state detactorship that, rouge as it is, is not even accountable to Congress, not even for its budget (it merely draws directly from an account at the Federal Reserve).
Won’t do me much good.
I’ve never paid one.
Unconstitutional. Period.
As much as I’d like to see this go into effect, it isn’t the purview of the US Government to dictate what fees/charges should be limited in a free commerce society. AFAIC there’s nothing in the US Constitution that supports this obvious vote pandering scheme.
What? You mean you keep track of your money and don’t spend more than you have? That’s a bizarre concept.
It would appear that any effort by Government to save it’s citizens money, would be done to then extract those saving from them through additional or increases in taxes.
Color me suspicious of those efforts. Government needs to shut up sit down and get out of the way and only do what article one section eight says they are authorized. The large group of layabouts in the US Congress need to join the Freedom Caucus and cease their treasonous efforts to destroy the country.
If it weren’t for irresponsible poor people, we wouldn’t have state lotteries.
Three dollar payday loans!
Automatically approved! No application necessary!
That’ll be popular, I bet!
“That’s a bizarre concept.”
And racist too!
Biden isn’t doing anything other than soiling his depends. His handlers realize the economy is not good for the middle class and below. So, they dramatize this little offering, trying to reinforce what the morons in the public want believe, that the Dems are for “the little guy”.
If they lower these fees, then there will be other fees and costs to other consumers that use their accounts responsibly. There are certain operating expenses and profit motives that will still be there. Likely the era of “free checking” will be over. The people that overdraft and pay late are funding the people that don’t.
It will actually hurt you because they will find other ways of making money and those not paying the fees now, will pay other fees.
And un-American, at least where the government is concerned.
Chump change.
If Biden really wants to help Americans avoid excessive fees, he could turn to the IRS and how they gouge the consumer.
Google tells me....
The maximum total penalty for failure to file and pay is 47.5% (22.5% late filing and 25% late payment) of the tax. If your return was over 60 days late, the minimum failure-to-file penalty is the smaller of $485 (for tax returns required to be filed in 2024) or 100% of the tax required to be shown on the return.
Americans bounce A LOT of checks.
Particularly the indebted, dependent, welfare types who Dems think are their constituency.
Without a doubt.
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