Chase Bank Warns of Higher Costs Due to New $8 Overdraft and $3 Late Fee Caps

Jul 5, 2024, 02:20 PM

Chase Bank has announced that new federal rules capping overdraft and late fees could make everyday banking significantly more expensive for Americans. The Consumer Financial Protection Bureau (CFPB) has proposed an $8 cap on credit-card late fees and a $3 cap for overdrafts. Currently, Chase charges $34 for overdrafts and earns over $1 billion annually from these fees. In response to these proposed regulations, Chase plans to pass on the costs to customers by charging for services that are currently free, including checking accounts and wealth-management tools. JPMorgan has warned customers to prepare for these changes, indicating that the era of free checking accounts may be coming to an end. Chase warns that these rules could have a 'profound' effect on everyday Americans.