Several banks and banking trade groups have filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) regarding a finalized rule that restricts the amount of overdraft fees banks can charge. This rule is part of President Joe Biden's efforts to reduce excessive fees that impact consumers, particularly in banking services.
The finalized rule, announced recently, allows banks to choose from three options for overdraft fees: a flat fee of $5, a fee covering their costs and losses, or any fee as long as the terms are disclosed, typically as an annual percentage rate (APR).
