The Consumer Financial Protection Bureau has passed a rule limiting overdraft fees banks can charge, continuing the Biden administration's crackdown on junk fees that affect consumers on everyday purchases.
Overdraft fees occur when a bank loans a consumer money after their balance dips below zero, expecting the amount to be repaid with an additional fee. In some cases, according to The Associated Press, the consumer is expected to repay the bank more than the original amount charged. For example, a $3 coffee could end up costing more than $30.
