The Biden administration proposed banning another type of bank “junk fee” on Wednesday, targeting fees that are typically charged by banks when a transaction is declined in real time. (AP Photo/Manuel Balce Ceneta)
The Biden administration proposed banning another type of bank “junk fee” on Wednesday, targeting fees that are typically charged by banks when a transaction is declined in real time.
It's the second major proposal by the Consumer Financial Protection Bureau over fees that Americans sometimes run into when they bank, following the bureau's announcement that it plans to reduce overdraft fees to as little as $3.
The CFPB's proposal on Wednesday focused on a narrower set of transactions: when a customer tries to withdraw money, send a payment immediately or make a purchase and that transaction is declined at the time of the transaction due to lack of sufficient funds. The CFPB used the example of a customer trying to buy $100 in groceries with $90 in their bank account, and the transaction is declined at checkout.
When this happens, banks can charge a fee when a customer attempts to withdraw or debit their account more than their available funds. This fee, which the bureau has previously estimated to be around $34, would be entirely banned under the CFPB's new rules.
These types of transactions differ from overdrafts because a transaction in an overdraft scenario is approved and that customer’s account goes negative. They are also different from non-sufficient fees — also known as “bounced check fees” — because those transactions were also preapproved by the customer, like a gym membership or utility bill.
Unlike the overdraft regulations announced last week, the bureau's proposed regulations would apply to all banks and credit unions, even small banks. The overdraft rule applied only to larger banks with more than $10 billion in assets.
“Banks should be competing to provide better products at lower costs, not innovating to impose extra fees for no value,” said CFPB Director Rohit Chopra in a statement.
The bureau did not give an estimate on how many of these specific transactions were still occurring at the moment. The bureau's research shows that banks with over $10 billion in assets have eliminated nearly all of their NSF fee revenue over the last several years.
Appointed by President Joe Biden to the CFPB in 2021, Chopra has focused a significant part of the bureau's work on combating unnecessary fees and what he considers exploitative practices by the banks. Biden has made the elimination of “junk fees” one of the cornerstones of his administration’s economic agenda heading into the 2024 election.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
