Overdraft fees from big banks now count as loans, not just charges

The US consumer protection agency now treats overdraft fees from very large banks as actual loans, not just service charges. This means these banks must follow the same consumer protection rules that apply to other credit products.

For years, big banks could charge high fees for overdrafts without the same rules that apply to other loans. This change means banks can no longer use overdrafts as a loophole to avoid consumer credit protections. It forces them to be more transparent about the real cost of these short-term credit extensions.