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Today: Jun 14, 2024

Biden regulators bid to ban banks’ transaction-declined ‘junk fees’.

1 min read

The Biden administration has proposed a ban on transaction-declined fees, which are often charged by banks when a customer’s transaction is declined due to insufficient funds. This follows the administration’s recent proposal to reduce overdraft fees. The ban on transaction-declined fees would apply to all banks and credit unions, not just larger banks. The Consumer Financial Protection Bureau (CFPB) estimates that these fees can be as high as $34 per transaction. The proposal aims to eliminate unnecessary fees and exploitative practices by banks, which aligns with President Biden’s focus on eliminating “junk fees.” This proposal is part of the administration’s economic agenda leading up to the 2024 election.