The Consumer Financial Protection Bureau issued a proposed rule Wednesday that would stop banks and other financial institutions from levying nonsufficient funds fees on transactions declined in real time.
The proposed rule would ban NSF fees on declined debit purchases, ATM withdrawals and some peer-to-peer payments.
This type of fee is uncommon, making the proposal proactive.
“Over the years, large banks and their consultants have concocted new junk fees for fake services that cost almost nothing to deliver,” CFPB Director Rohit Chopra said in a prepared statement Wednesday. “Banks should be competing to provide better products at lower costs, not innovating to impose extra fees for no value. The CFPB will continue to rid the market of junk fees today and prevent new junk fees from emerging in the future.”