CFPB Implements Cap on Bank Overdraft Fees to Bolster Consumer Protections

The U.S. Consumer Financial Protection Bureau (CFPB) has issued a new directive that limits the overdraft fees imposed by large banks to either $5 or the administrative cost of processing the overdraft. This rule was introduced during the final weeks of the Biden administration and is set to be enforced starting in October 2025. The enforcement of this policy will fall under the jurisdiction of the upcoming administration led by Donald Trump. This move aligns with efforts to provide clearer consumer protections and to curb unnecessary financial burdens on banking customers. For more information, you can access the detailed report on the National Law Journal.