Biden Administration Targeting Overdraft Fees Helping Consumers

The Consumer Financial Protection Bureau is targeting $3.5 billion in consumer fees. Veuer's Elizabeth Keatinge has more.

Transcript

00:00 Quote, "a massive junk fee harvesting machine," unquote.

00:04 That's what the Consumer Financial Protection Bureau

00:07 director Rohit Chopra says has become

00:09 of some overdraft loans.

00:11 Rohit says years ago,

00:13 there was a reason for these overdraft fees.

00:15 Quote, "Decades ago, overdraft loans got special treatment

00:19 "to make it easier for banks to cover paper checks

00:21 "that were often sent through the mail," unquote.

00:24 Now, the Biden administration is trying to shrink those fees

00:27 that cost consumers 3.5 billion a year.

00:31 These fees often hit those

00:33 who already have financial difficulties.

00:36 The CFPB report showed 81% of consumers

00:39 who overdraft had difficulty paying a bill.

00:42 The CFPB is proposing rules that would set standards

00:45 on how much banks can charge.