things.
First overdraft fees have been a huge profit center for banks for years. It is the best yielding loan product, by far.

Second up till now, overdraft fees have been excluded from most consumer protection laws, limiting interest rates charged. A $35 overdraft fee on a $50 overdraft that outstanding for a month exceeds usury limits by many times.

The proposed change goes from an exorbitant flat fee applied whether the overdraft is $25 or many times higher, to basically an APR based charge that charges less for smaller overdraft than for larger, and limits on what that APR can be just like with every other kind of consumer loan. I haven’t done the math here but a three dollar overdraft charge on a $50 overdraft that’s covered within a month is still a huge yield, and huge yield cover lots of write offs.

Finally, in many countries, deposit accounts basically come with with an over limit credit line facility that covers overdraft at a high rate, but considerably lower than what we’ve been charging in this country. Always has seen like a better system to me.