Lawmakers voted to invalidate a rule adopted last year by the Consumer Financial Protection Bureau. It now moves to the House.

Summary:

The Senate voted Thursday to strike down a rule capping most bank overdraft fees at $5, a measure adopted late last year by the Consumer Financial Protection Bureau that had been expected to save Americans billions of dollars per year.

Senator Josh Hawley, Republican of Missouri, was the lone Republican to oppose the resolution, which passed on a nearly party-line vote, 52-48. It will now move to the House, where Representative French Hill, the Arkansas Republican who leads the Financial Service Committee, introduced a parallel resolution last month.

The rule would have limited the fees banks and credit unions could charge when customers spend more than they have in their accounts, typically $35 per overdraft. The bureau estimated it would save American households $5 billion a year. It was immediately challenged in court by banking trade groups.

Personal opinon:

Call your bank and tell them to turn off overdraft protection now.

  • clonedhuman@lemmy.worldEnglish
    39·
    4 days ago

    Back in the day, Wells Fargo would intentionally run higher charges first in their cycle so that people couldn’t skirt the edges of overdraft. Like, if someone made a $35 purchase, and three $1 purchases over the same two day period, they would immediately run the $35 purchase and then charge three overdraft fees for each of the $1 purchases instead of running the three $1 purchases first (even if they came first) and then charging a single overdraft fee when the $35 purchase hit.

    I believe they got a fine for it.

    • GuyFawkes@midwest.socialEnglish
      13·
      4 days ago

      Reminds me of years ago when I had an account at BoA in college. Had two $20-ish charges when I had $30 in the account, and they tried to charge me TWO overdraft fees because $40 > $30. They kept going round and round that I had $40 in charges but only $30 in the bank, so they overdrafted. I kept repeating “which charge hit first?” I swear they danced around that for like 15 minutes, first that they couldn’t tell, then that they came in at the same time. Finally I said “okay, let’s say charge 1 was first. What was my balance then? Okay, let’s say charge 2 was first - what was my balance then?”

      Took far longer to even get them to admit the mistake than it should’ve.

    • Ersatz86@lemmy.world
      8·
      4 days ago

      I never pass on the opportunity to say fuck Wells Fargo.

      Thus, fuck Wells Fargo.

      Furthermore, to echo a comment further down, up against the wall with those shitcunts.