CFPB’s new rule ends overdraft profits. Big banks must cap fees at $5, use cost-basis or fully disclose terms, saving US Americans billions each year.

The Consumer Financial Protection Bureau announced the final version of a rule limiting banks' ability to charge overdraft fees. It says the rule will save American consumers $5 billion annually. The CFPB said its overdraft rule will take effect Oct.

The agency set an October 2025 deadline for the new restrictions to take hold, giving enforcement authority to the incoming Trump administration.

Consumers will save up to $5 billion in bank and credit union overdraft fees each year in a reform finalized Thursday by the U.S. Consumer Financial Protection Bureau.

In a final rule to be released Thursday, the Consumer Financial Protection Bureau would allow banks to either charge $5 for overdraft fees or another amount commensurate with costs. Banks could also charge more if they disclose the fees' annual percentage rate of interest to customers.

The Consumer Financial Protection Bureau installed the regulation less than two months before President-elect Donald Trump takes office.

Banks and credit unions with $10 billion or more in assets could alternately choose a break-even overdraft protection cost or make credit card-like disclosures to consumers, the CFPB said.

A new rule from the Consumer Financial Protection Bureau would cap many overdraft fees at just $5. It might not last.

US bank stocks are in focus this morning after the Consumer Financial Protection Bureau announced a new rule that significantly limited their ability to charge an excessive overdraft fee. The regulator expects its new rule to save American consumers up to $5 billion per year.