07:16 AM EST, 12/12/2024 (MT Newswires) -- The US Consumer Financial Protection Bureau has adopted new regulations, capping overdraft fees at $5 per transaction for banks with over $10 billion in assets, multiple media outlets reported Thursday.

The rule is expected to save depositors $5 billion annually. "The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they're charging on overdraft loans," the agency's Director, Rohit Chopra, was quoted by multiple outlets as saying.

The rule allows banks to charge a $5 fee covering costs or losses or offer credit in compliance with credit laws.

The regulation faces opposition from the American Bankers Association and congressional Republicans, media outlets reported.

Reuters reported that the Republican-led Congress could attempt to nullify the rule.