Senate Republicans vote to let banks gouge customers with higher overdraft fees

The U.S. Senate just advanced a resolution on a party-line vote to give banks more leeway to charge customers exorbitant fees if they don't have enough money in their accounts.

On Wednesday, senators passed a bill by Sen. Tim Scott (R-S.C.), who chairs the Senate Banking Committee, aimed at undoing a rule imposed by the Consumer Financial Protection Bureau (CFPB) under former President Joe Biden to cap overdraft fees at just $5. The rule was set to go into effect in October, though if it passes the House and is signed into law by President Donald Trump, it will never go into effect. Banks' overdraft fees can be as high as $35.