It happens to the best of us – you spend a little more than you have, and you get hit with those awful overdraft fees. However, they may not be as pricey for long if a proposed change goes through on the national level.

The Consumer Financial Protection Bureau, an independent federal agency, announced it wants to lower overdraft fees. It said right now they’re $26 on average. They would drop to between $3 and $14 under the changes.

There are multiple proposals for this. One would turn the fees into loans people would pay back. Another would make the overdraft coverage a courtesy service – not for profit.

The move is aimed at helping folks who are just trying to get by.

“As a college student, because you know college students are broke out here, I would say that it would be good to lower the price of overdraft fees,” University of New Mexico sophomore Angelique Sanchez said.

Many people like the idea.

“I think it’s unfair to the consumer. I think that the banks, they make enough money anyway,” said Ken, who lives in Albuquerque.

But others don’t support it.

“The language is pretty clear, and I think it’s one person’s responsibility to pay attention to that, so whatever you agree to in writing, it’s done,” said Central New Mexico resident Jude Herrera, de la Casa de Salazar.

“Well I think once you sign up for a bank account you know what the rules are and what they’re going to ask you for, so you need to be prepared,” said Tomas Luna, who lives in Albuquerque.

UNM finance professor Reilly White gave KOB 4 some perspective.

“Consumers are really getting the short end of the stick because for many consumers, they’re surprised by overdraft fees, and it exacerbates a difficult situation for them,” White said.

The agency proposing the changes said since the year 2000 Americans have paid an estimated $280 billion in overdraft fees.

“Overdraft fees are a big deal. In a given year banks make between $9 billion and $12 billion from overdraft fees alone. On the consumer side, overdraft fees are really significant,” White said.

The federal agency reports the average account has to pay around $42 per year.

The banking lobbies and associations don’t like any of the proposals. They have said some banks may choose to end the overdraft service altogether under these regulations.

“So right now banks look at the overdraft program as a means of affording credit to consumers who are in dire financial position,” White said. “Banks are saying, ‘Well, if we can’t give you a $35 fee on this, we just won’t allow you to overdraft your account,’ which is a mixed bag for consumers. While some consumers certainly need it, and expect to use those $35 overdraft fees, the practice has been considered manipulative by many consumer protection bureaus.”

Many in the banking industry have said it’s not good that this change would cut into their revenue.

“The banks’ argument is basically they’re performing an important service for consumers who are down on their luck,” White said. “They’re allowing people to participate in the banking system.”

The new regulations would only apply to the largest 175 banks in the country. They wouldn’t start until the fall of 2025, the Consumer Financial Protection Bureau said.

These proposals are part of efforts from the Biden administration to crack down on what it calls “junk fees.”