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.
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.
Three dollar payday loans!
Automatically approved! No application necessary!
That’ll be popular, I bet!
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”.
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.
One thing everyone should do (and is required already) is ask for the Reg E opt out. Under Reg E, you can tell your institution whether to pay debit card transactions if they will overdraw your account. As an example, if you are at the grocery store and have a $101 charge processed on your debit but only have $100 in your account, the bank can decide to pay or not pay. If you have signed up for overdraft against your card, they will pay and charge you an overdraft fee. If you don’t sign up then they will likely reject the transaction and the cashier will say that your card did not go through.
It is an affirmative opt in but many institutions at time of account opening make it very easy for you to sign up for it and don’t explain the repercussions.
It’s OK to charge an overdraft fee, but banks have been getting greedy. Also, they seem to raised the fees about in synch, so there is no free market aspect.
Pigs get fat, but hogs get slaughtered.
Governments are very bad at trying to control the economy. The only way a capitalist country’s economy can work effectively if by allowing Adam Smith’s invisible hand do its thing.
This does not mean that everything will be fair or that people will not unfairly “punished” or unfairly gain an advantage, only that the market of supply and demand will correct the problem.
So - huge question here:
This would only apply to the top 145 “Mega-Banks”, not to the smaller regional and local banks?
Say you have an overdraft on an account at Bank of America - they would be limited in what they could charge for the overdraft to $3,4, 14 - whatever...
But the exact same scenario at your local hometown bank that only has a couple dozen locations... they can still charge $20-30 - whatever they deem appropriate.
OK - so: whatever became of equal protection under the law? I’m no defender of big, predatory banks - but I am also very much not a fan of government regulations.
WHY ARE THE BANKS BEING BLAMED FOR OVERDRAFT FEES????
AS A BOOKKEEPER FOR OVER 66 YEARS-—
OVERDRAFTS ARE DIRECTLY THE FAULT OF THE ACCOUNT HOLDER-—
NOT THE BANK
If the substantive action is not clearly required by Congress, it is too much for to do by regulatory agency.
Excessive bank fees and interest rates should have been dealt with by Congress decades ago.
Getting past the issue of the government setting some guidelines, I think this is actually a good idea. Despite everyone’s best efforts and intentions, sometimes things happen that you don’t intend on. Like an autopayment that goes through with the wrong time, or, what I’ve gotten tripped up on recently as they count my expenditures before the deposits on a given day, and then try to charge me for those expenditures even though the money was already deposited. $30 a shot is outrageous, and yes, they do reverse it when I call them, but the banks do need some regulation to prevent gouging customers, taking it undo advantage.
Forget about the banks and think about businesses. Don’t we want a deterrent to floating bad checks? Maybe give (some or all of) the fee to the businesses to help/protect them? Banks should be closing accounts of repeat offenders...