The Consumer Financial Protection Bureau has finalized a rule capping overdraft fees at $5, effective October 2025. This decision aims to save consumers approximately $5 billion annually, as these fees often disproportionately affect low-income individuals. The rule allows banks to charge a flat fee, a cost-recovery fee, or disclose overdraft loan terms. Despite the savings for consumers, major banks argue the rule could limit access to overdraft services and have indicated potential legal challenges, particularly with a change in administration expected. The rule reflects an ongoing effort by the Biden administration to crack down on excessive "junk" fees.