BAKERSFIELD, Calif. (KERO) — As more and more people are watching their money, the U.S. Senate voted to overturn a rule when it comes to overdraft fees.
- In early 2024, a proposal by the Consumer Financial Protection Bureau would put a limit on overdraft fees.
- Now, this rule is expected to change before it even took effect.
- The update is expected to take effect on April first and be enforced on October first.
BROADCAST TRANSCRIPT:
A Thursday vote by the Senate overturned a rule that limited overdraft fees to $5 for some banks.
The $5 dollar amount is down from the standard $35 dollar amount.
Backed by the Consumer Financial Protection Bureau, the Biden administration placed overdraft protection regulations on banks and lenders with at least $10 billion dollars in assets.
Before these changes could come into effect, Senate lawmakers voted for its reversal on March 27 with a 52-48 vote, removing what would have been that cap on overdraft fees.
Republican Senator Tim Scott argued previously that the Biden administration's regulations need to be reversed so that banks can maintain services during economic changes.
However, some consumer advocates say this can make things financially harder for families who are already living paycheck to paycheck.
The update is expected to take effect on April first and be enforced on October first.
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