The Consumer Financial Protection Bureau's new rule caps overdraft fees at $5, aiming to save consumers billions annually and ...

The Biden administration is placing new rules on banks that would severely restrict how much they can charge on overdrafts.

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

Consumer groups applauded the move, but banks said customers could be driven toward more expensive options such as payday loans.