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Biden Hails Bid to Cut Bank ‘Junk Fees’ as Boon to Consumers

  • CFPB’s new guidance targets some overdraft penalties
  • Move to especially aid poorer Americans, administration says
Wall Street Frets Over A Revived CFPB Trump Left Toothless
Photographer: Ting Shen/Bloomberg
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President Joe Biden touted a new US push to clamp down on overdraft fees banks charge on checking accounts, as the White House looks to address voter concerns about spiraling costs ahead of the Nov. 8 midterm elections.

The guidance announced Wednesday by the Consumer Financial Protection Bureau could deal a significant blow to banks that earned nearly $8.5 billion from the charges last year. The CFPB has said some overdraft penalties amount to “junk fees,” which are often shouldered by poorer Americans with less money in their checking accounts.