The Biden administration’s plan to slash bank overdraft fees, explained

If you can't manage your finances then you deserve to get hit with overdraft fees. The more you baby these people they will never learn nor be held accountable for their actions.

I have a strong suspicion this will backfire.

The intent is to help those with low balances and low incomes avoid harsh penalties for their own irresponsibility.

The result, I fear, will be them having no account at all. Or them having "low balance" fees in addition to the lower overdraft fees.

Banks are a business. They are there to make money. They make almost no money on low balance accounts. Without those service fees, they would actually LOSE money on those low balance accounts. Buildings cost money. So do websites, tellers, IT folks, the electricity to power it all, security guards and armored trucks, and more. Ever wonder how they are able to offer no fee checking? No fee savings even for low balances? Those overdraft fees are one of the ways they recoup the cost of providing you banking service.

If you don't want the overdraft fee, OPT OUT of overdraft protection. Of course, now you are facing an insufficient fund penalty from whoever was SUPPOSED to have been paid - which is almost always going to be more than that overdraft fee would have been, but who is counting?

Or, of course, you could be responsible with your money. Actually maintain a checkbook or account ledger and keep track of spending. Nah! Why go to that kind of effort if we can just have the government interfere in private business to make sure we aren't accountable for our own irresponsibility?

The Biden Administration needs to slash inflation!