Good Night to a Biden Overdraft Rule

The Senate nixes a price control on credit. Will the House follow?

WSJ editorial. Excerpts:

"The rule effectively caps what banks can charge when consumers overdraft their checking accounts, at $5 per transaction, down from today’s $35 average. The agency dubiously styled such fees as loans, which are subject to more regulations."

"a Federal Reserve Bank of New York study that found such caps “hinder financial inclusion” because “banks reduce overdraft coverage and deposit supply.” The rule would cause banks to drop overdraft protection and raise other fees, including on checking accounts. Lower-income folks would lose access to the banking system and perhaps have to pay more to get payday loans." 

"Many banks have already slashed overdraft fees to compete with fintech firms."