The Consumer Financial Protection Bureau (CFPB) yesterday proposed a new rule cracking down on fees that banks charge consumers when they do not have sufficient funds to cover a purchase or transaction in real time, Reuters reported. The proposed CFPB rule is part of a broader crackdown by the administration of President Joe Biden on so-called "junk fees" a range of companies charge consumers, and comes as banks are already fighting the consumer watchdog over other proposed fee curbs. CFPB research suggests banks and credit card companies charge over $14 billion annually in punitive fees, while bank revenue from overdraft and non-sufficient funds (NSF) fees surpassed $15 billion in 2019. The industry has disputed the CFPB's data. Wednesday's proposed rule would prohibit NSF fees on transactions such as declined debit card purchases and ATM withdrawals, as well as some declined peer-to-peer payments, the agency said.
