Congress has voted to overturn federal limits on overdraft fees, drawing praise from banks but fierce criticism from consumer advocates, who say the move harms working-class Americans. The repeal now awaits President Trump’s signature.
Critics argue overdraft fees function like high-interest loans, with penalties that far exceed the original purchase. Legal aid attorney Elizabeth Lynch and Consumer Reports’ Chuck Bell say banks profit billions from the charges while lobbying against regulation.
Advocates are urging New York lawmakers to act, with proposals like the FAIR Act and a state-level fee cap aiming to restore consumer protections.
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