Banks just got a big win—at your expense.
On Friday, President Donald Trump signed off on two rollbacks that kill key consumer protections created during the final stretch of the Biden administration. One of those rules would have capped overdraft fees at $5. The other aimed to regulate tech giants like Apple and PayPal offering digital wallets. Now, banks are free to charge whatever they want for overdrafts again.
The rule Trump eliminated was finalized in December and meant to stop banks and credit unions from slapping Americans with steep fees every time they overdrew their accounts. Instead, they would only be allowed to charge what it actually costs them—usually much less than the $35 fees many banks now collect.
But banks and their allies in Congress fought hard to kill it. And they won.
“The Biden administration’s ill-conceived rule imposing new price controls on overdraft services provided by banks and credit unions harmed the very consumers the CFPB is supposed to protect,” said Senator Tim Scott (R-S.C.), who led the push to reverse it.
“The rule would have reduced access to credit and important financial services and resulted in more unbanked Americans,” he added. “That’s why I led the effort in Congress to overturn the rule, and I’m grateful for President Trump’s support to eliminate this misguided rule once and for all.”
The other rule Trump struck down would have given the Consumer Financial Protection Bureau (CFPB) the power to oversee big tech companies running digital payment services—companies like Google, Amazon, Apple, PayPal, and Venmo.
Tech lobbyists cheered the move.
“This action stops a harmful rule that would have raised costs, limited choice, and stifled innovation in digital payments,” said Penny Lee, head of the Financial Technology Association. “We applaud President Trump for taking action against regulatory overreach and protecting the future of U.S. competitiveness.”
House Financial Services Chair French Hill (R-Ark.) also backed the rollback. “Americans voted for consumer choice, not government overregulation,” he said. “By overturning these two rulemakings, we are returning decision-making power where it belongs: with the American people.”
But behind the scenes, Trump’s administration is gutting the very agency meant to protect consumers. Russell Vought, the acting CFPB director, has shut down headquarters, told staff to stop working, and tried to lay off most of the workforce.
The National Treasury Employees Union sued, saying he’s trying to destroy the agency from the inside. A federal judge temporarily blocked the layoffs—but that order was partially rolled back, giving the Trump administration a green light to keep cutting.
Vought hasn’t stopped there. He’s already thrown out nearly 70 policy rules, advisory opinions, and guidelines that helped regulate banks and lenders.
Trump, who once promised to protect “forgotten Americans,” is now making it easier for banks to charge them more.
