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.
This is good. What would be even better would be severely slashing APR on incurred credit card debt. Interest should be reasonable amounts that allow people to realistically pay back credit debt without barely being able to keep up with some financial mistakes.
Tie credit card rates to savings interest. Let them fight it out.
It’s good, but its offering crumbs to people who are starving. Overdraft fees were extremely predatory and we’re being promised that after decades of that, maybe it will be reigned in, if we’re lucky.
Meanwhile, the fucking world is ending.
Don’t let perfect be the enemy of good.
I understand the sentiment, but I’m tired of settling for “good” when “significantly better” is just there.