As expected, the banking industry has filed a lawsuit to stop a new regulation that would cap most overdraft fees at $5.

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

The Biden administration finalized a rule that will cap overdraft fees at $5 at the largest banks and credit unions.

It is unclear whether the rule, which could help save Americans billions in fees each year, will remain in place after President-elect Donald J. Trump returns to office.

The Consumer Financial Protection Bureau on Thursday announced the final version of a rule limiting banks’ ability to charge overdraft fees.

US watchdog caps bank overdraft fees over industry objection (Reuters) – The U.S. watchdog agency for consumer finance on Thursday adopted new regulations capping the amount banks can charge for overdrafts,

Banking customers could save up to $5 billion per year on overdraft fees under a new rule finalized Thursday by the Consumer Financial Protection Bureau. Rohit Chopra, the director of the government watchdog in charge of protecting the public's finances,