Biden White House Cracks Down on “Junk Fees” Prior to Midterms
The Biden administration announced new measures intended to crack down on so-called junk fees charged by banks and other companies as part of a wider effort to try to lower costs for Americans with the highest inflation in decades.
The Consumer Financial Protection Bureau issued new guidance Wednesday making it illegal for banks to charge overdraft fees when at the time of purchase the bank website or ATM balance showed the customer had enough money in their account. The agency will also make it unlawful for banks to charge a fee to a customer who deposits a check that then bounces.
“Each year these junk fees that companies charge cost Americans tens of billions of dollars, weighing down family budgets and making it harder for people to pay the bills, so my administration has taken action to eliminate these,” President Joe Biden said in remarks from the White House on Wednesday.
