Biden administration approves overdraft limits angering banks

The new rule limits what banks can charge for overdraft fees, potentially saving consumers up to $5 billion annually. Large financial institutions must either cap fees at $5, cover costs and losses, or disclose loan terms. This rule aims to close outdated loopholes and reduce excessive fees, taking effect in October.

What is the purpose of the new rule regarding overdraft fees?

When is the new overdraft fee rule expected to take effect?