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.

  • UnderpantsWeevil@lemmy.world
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    10 months ago

    Okay, yes, but counterpoint from my conservative relatives “Why were you simply not more responsible? I never have this problem.”

    • RagingRobot@lemmy.world
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      10 months ago

      Probably because they have enough money in their account to always have padding. People who live pay check to pay check don’t have that luxury.

      • ItsMeSpez@lemmy.world
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        10 months ago

        Yes but what you’re not understanding is that living paycheque to paycheque is actually a sign of your moral degeneracy. The system is perfect and judges us all equally and fairly.