The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest move by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck.

The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest effort by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck.

The change could potentially eliminate billions of dollars in fee revenue for the nation’s biggest banks, which were gearing up for a battle even before Wednesday’s announcement. Exactly how much revenue depends on which version of the new regulation is adopted.

Banks charge a customer an overdraft fee if their bank account balance falls below zero. Overdraft started as a courtesy offered to some customers when paper checks used to take days to clear, but proliferated thanks to the growing popularity of debit cards.

  • HeyListenWatchOut@lemmy.worldEnglish
    73·
    10 months ago

    I mean… it’s probably because the “great” things are tiny little things at the margins…

    When I hear Biden is reducing the thing that fucking sucks to something that fucking sucks a tiny bit less and people are saying these are “great things,” It’s like hearing somebody say it’s a “great thing” that the grocery store sends a one time “3% off after buying 3x of an item” coupon once after prices have gone up by 20%.

    If Biden wants to get more people on board, he’s gotta stop doing these fucking 3% coupon things and start passing major shit… or in the very least change his speeches from “we’re a good country with a good soul…” to “the Republicans are stopping me from passing a ‘fuck you grocery store stop gouging your prices by 20% to boost the stock price while firing workers’ piece of legislation forcing you to come back down to normal because you’re being a bunch of greedy fucking ghouls.”

    This pro “status quo” and tiny coupon stuff he keeps going with has got to stop. He’s got to push and fight to show he wants to make things actually tangibly materially better!

    • Flying Squid@lemmy.world
      62·
      10 months ago

      If this works, making overdraft fees $3 is fucking huge.

      Some points, directly from the Consumer Financial Protection Bureau:

      • Among households that frequently incurred overdraft/NSF fees, 81% reported difficulty paying a bill at least once in the past year.

      • Among consumers in households charged an overdraft fee in the past year, 43% were surprised by their most recent account overdraft, 35% thought it was possible, and only 22% expected it. Consumers who overdraft infrequently are more likely to be surprised by a fee

      • While just 10% of households with over $175,000 in income were charged an overdraft or an NSF fee in the previous year, the share is three times higher (34%) among households making less than $65,000.

      https://www.consumerfinance.gov/about-us/newsroom/cfpb-issues-report-showing-many-americans-are-surprised-by-overdraft-fees/

        • Lynthe@sh.itjust.works
          21·
          10 months ago

          Perhaps if you aren’t interested in reading analysis by others you might want to consider why your response is a multi paragraph answer justifying why a good news headline is actually bad and confirms your priors that Biden and Democrats are bad. I think this comment is a pretty perfect example of bad faith arguments.