Bureaucrats Are Moving To Cap Bank Overdraft Fees, Which Will Hurt the People It’s Meant To Help

Source: Reason
by Veronique de Rugy

“[O]verdraft protection is an optional, opt-in service that allows consumers to spend money they don’t have at the bank’s expense. Purchases are approved that would otherwise be declined for lack of funds. For low-income consumers, this service is sometimes vital. And indeed, consumers report by wide margins that they are glad it exists even though it naturally comes at a cost. Thankfully for all of us, CFPB bureaucrats agree that banks should charge a fee. Unfortunately, they think they know best what these fees should be. … Because of bureaucratic interference, many who see overdraft protection as preferable to other short-term credit options, such as payday lending or high credit card balances, will have fewer choices as some banks decide that the service isn’t worth offering at the price deemed appropriate by government officials.” (02/08/24)

https://reason.com/2024/02/08/bureaucrats-are-moving-to-cap-bank-overdraft-fees-which-will-hurt-the-people-its-meant-to-help/