In the US they propose to limit overdraft fees in large banks – Kommersant

US Consumer Financial Protection Bureau (CFPB) suggested change the rules for charging consumers fees for using overdrafts on credit cards. The regulator wants to limit the amount of commissions charged by large banks and other financial institutions with assets under management of $10 billion or more.

According to the CFPB, consumers are often “unpleasantly surprised” by the fees, especially among the most vulnerable people who often rely on credit card overdrafts. “Today we are proposing new rules that will address the flaws in the regulatory regime that are causing many large banks to turn their overdraft system into a fee-squeezing machine,” said CFPB Commissioner Rohit Chopra.

According to the agency, for many consumers, fees often amount to about $35, even when the overdraft itself is less than $30 and is paid off within three days. The CFPB offers several options that would limit the charging of excessive overdraft fees without causing significant harm to businesses or preventing the development of financial services.

Among such measures is bringing overdraft fees to the general rule that applies to other credit products of this bank; or the introduction of a fixed commission rate; or charging a commission, the amount of which would be proportional to the average amount of funds in the client’s accounts for any specified period. The CFPB’s proposals are open for public comment until April 1, after which a final version of the reform will be developed. In this case, the new rules could come into force by the fall of 2025.

Evgeny Khvostik