Banks Sue CFPB Over New Overdraft Fee Rule

Banks Sue CFPB Over New Overdraft Fee Rule

1 minute read
Updated 13 days ago

Legal Challenge and Industry Concerns

Banks and trade groups are suing the over a rule limiting overdraft fees, arguing it forces consumers to unregulated services and exceeds the agency's authority.

The rule, part of 's campaign against junk fees, offers banks three options for overdraft fees, aiming to save consumers $5 billion annually.

Implementation and Political Outlook

Set to take effect in October 2025, the rule faces potential reversal under the incoming Trump administration, which has hinted at CFPB's elimination.

The lawsuit, filed in Mississippi, seeks to block the rule until a final decision, reflecting broader tensions between regulatory efforts and industry pushback.
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Sources

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