A new proposal from the Consumer Financial Protection Bureau (CFPB) would allow banks to send text messages to customers when their debit card transactions are about to be declined due to insufficient funds. The proposal would also require banks to obtain customers' consent before sending these text messages.

The CFPB says that this proposal would help to protect consumers from overdraft fees, which can be costly and unexpected. Overdraft fees can occur when a customer makes a purchase that exceeds their available balance, and the bank charges a fee to cover the difference.

The CFPB estimates that consumers paid an estimated $17 billion in overdraft fees in 2021. The agency says that its proposal could save consumers up to $1 billion per year in overdraft fees.

Some consumer groups have criticized the CFPB's proposal, saying that it could lead to consumers being more likely to overdraft their accounts. However, the CFPB says that its research shows that the proposal would actually reduce the number of overdrafts.

The CFPB's proposal is still in the early stages, and it is not yet clear whether it will be adopted. However, if it is adopted, it could have a significant impact on the way that banks and consumers manage overdrafts.

Here are some key details about the CFPB's proposal:

* Banks would be required to send text messages to customers when their debit card transactions are about to be declined due to insufficient funds.

* Banks would be required to obtain customers' consent before sending these text messages.

* The CFPB estimates that this proposal could save consumers up to $1 billion per year in overdraft fees.

* The proposal is still in the early stages, and it is not yet clear whether it will be adopted.