The Biden administration unveiled a new rule Wednesday aimed at slashing bank overdraft fees to as low as $3, a move the president said would help end abusive practices by financial institutions.

Under the proposal, banks could continue to charge fees when a customers account falls below zero, but either at a price in line with the banks actual costs to administer the overdraft or at an established benchmark created by the new rule.

The Consumer Financial Protection Bureau (CFPB) proposed potential fees of $3, $6, $7 or $14 and is seeking feedback from banks and the public on what would be appropriate. Current overdraft fees often push $30 or more, taking a significant bite out of low-income accounts.

Rohit Chopra, the CFPBs director, said in a statement that banks had turned overdraft fees into a cash cow that they were never intended to be, especially with the rising popularity of debit cards over the years.

Decades ago, overdraft loans got special treatment to make it easier for banks to cover paper checks that were often sent through the mail, Chopra said. Today, we are proposing rules to close a longstanding loophole that allowed many large banks to transform overdraft into a massive junk fee harvesting machine.

President Joe Biden was more blunt about overdraft fees in a statement released by the White House.

Banks call it a service I call it exploitation, he said.