Congress moves to restore overdraft protections banks tried to shed
H.J.Res. 169 — Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices". · Filed by Nydia Velázquez (D-NY) · Introduced Apr 30, 2026 · Referred to committee
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What it does
This resolution blocks the CFPB's attempt to withdraw a consumer protection rule (Circular 2024-05) that restricts improper overdraft opt-in practices. By disapproving the CFPB's withdrawal, Congress restores the overdraft protection rule, preventing banks from using aggressive tactics to enroll consumers in overdraft fees.
Why we flagged it
This is a Congressional Review Act (CRA) disapproval resolution that uses the CRA's one-sentence procedural mechanism to block a regulatory withdrawal. The operative effect is restoration of a consumer protection rule, not deregulation.
What the text implies
- If enacted, this resolution would set a precedent for using CRA disapprovals to block agency rescissions of rules—a reversal of the typical CRA use (blocking new rules). This could constrain future administrations' ability to roll back regulations.
- The resolution targets a specific CFPB circular by name and Federal Register citation, making it a narrow legislative intervention in a discrete regulatory action rather than a broad policy statement.
The full analysis lists 3 implications of this text.
Who it affects
Ordinary consumers regain protection against predatory overdraft enrollment practices. Banks lose a regulatory rollback they had secured, but consumers gain restored safeguards against fees triggered by aggressive opt-in schemes.