Bank overdraft fees, pricey penalties charged to customers who overdraw their accounts, face a cap under new rules released Thursday.

In what could be one of the final salvoes in President Joe Biden's war on what the administration calls "junk fees," the Consumer Financial Protection Bureau issued a final rule Wednesday capping bank overdraft fees at $5 in most cases.

ABC News’ Elizabeth Schulze reports on how the Consumer Financial Protection Bureau’s decision will impact consumers.

Federal regulators have closed a bank overdraft fee loophole that could save American consumers billions of dollars each year.