$5 cap on overdrafts finalized by Biden Administration: Will it actually happen?

(NEXSTAR) - A new federal rule would cap overdraft fees at $5 beginning late next year. That would be a big drop from the 2023 average of $26, but the policy still faces legal and potential political challenges.

The new rule was released Thursday by federal regulators and is part of President Joe Biden’s campaign against junk fees, which include everything from late fees and overdraft fees to hidden charges on concert tickets.

The Consumer Financial Protection Bureau offered...