White House Proposes Cutting Big Banks’ Overdraft Fees to $3

Since 2008, Americans have paid about $280 billion in overdraft fees.

Consumer Financial Protection Bureau Director Rohit Chopra testifies before the Senate Banking, Housing and Urban Affairs Committee April 26, 2022 in Washington, DC. Win McNamee/Getty Images

The Biden administration released a long-awaited proposal to adjust how large banks offer overdraft protection coverage to clients.

The changes are a part of the White House’s broader efforts to clamp down on so-called junk fees, with President Joe Biden calling them a form of “exploitation.”