US Bank Regulator Terminates ‘Legal Loophole’ That’s Draining $5,000,000,000 From Customer Accounts Per Year

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A US bank regulator says it’s shutting down a “legal loophole” that’s costing customers $5 billion in overdraft fees per year. The Consumer Financial Protection Bureau (CFPB) says a new rule will force large banks to either limit overdraft fees to $5, align them to actual costs and losses, or treat overdraft loans like other credit products. That would mean the banks have to disclose interest rates, provide account-opening disclosures, and give consumers the choice to opt in or out. With typical...