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.

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.

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

The rule closes a loophole that exempted overdraft fees from lending laws, but is expected to face challenges.

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.

Large US banks will have to cap overdraft fees at $5 — or an amount that covers their costs and losses — under a new consumer protection rule that’s been vigorously opposed by industry and Republicans.

The Consumer Financial Protection Bureau said it is limiting banks’ ability to charge overdraft fees, potentially saving households hundreds of dollars.

The finalized rule applies to banks and credit unions that have more than $10 billion in assets, which includes the nation’s largest banks.

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

The Consumer Financial Protection Bureau on Thursday announced the final version of a rule limiting banks’ ability to charge overdraft fees.