Bank groups sue the Consumer Financial Protection Bureau over a proposed cap on overdraft fees

AP Business Writer

Some banks and banking trade groups are suing the Consumer Financial Protection Bureau over a finalized rule that limits overdraft fees banks can charge. The rule is part of President Joe Biden administration’s campaign to reduce junk fees that hit consumers on everyday purchases, including banking services. A lawsuit has been filed by some banks, the Consumer Bankers Association, the American Bankers Association, America’s Credit Unions and Mississippi Bankers Association. The group claims that the CFPB is exceeding its regulatory authority with the new rule. CBA and its co-plaintiffs are also seeking a preliminary injunction barring the CFPB from implementing the new rule until the court makes a final decision on the merits of the case.