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 declined. The CFPB says this would help customers avoid overdraft fees, which can be as high as $35 per transaction.

Under the proposal, banks would be required to send a text message to customers when their debit card transactions are declined due to insufficient funds. The text message would include information about the declined transaction, such as the amount of the transaction and the merchant name. Customers would then have the option to respond to the text message to authorize the transaction or to cancel it.

The CFPB estimates that the proposal could save consumers up to $1 billion in overdraft fees each year. The proposal is currently open for public comment, and the CFPB is expected to finalize the rule later this year.

Some consumer advocates are concerned that the proposal could lead to consumers overspending. However, the CFPB says that the proposal includes safeguards to protect consumers, such as requiring banks to send a text message before a transaction is declined and giving customers the option to cancel the transaction.

The proposal is also supported by some banks and credit unions. They say that the proposal would help them reduce overdraft fees and improve customer service.

The CFPB's proposal is a step in the right direction. It would help consumers avoid overdraft fees, which can be a major financial burden. The proposal also includes safeguards to protect consumers from overspending.