Congress blocks CFPB overdraft-fee limits for biggest banks
H.J.Res. 59 — Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions". · Filed by J. Hill (R-AR) · 17 cosponsors · Introduced Feb 13, 2025 · Reported out
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What it does
This resolution uses the Congressional Review Act to block a CFPB rule that would restrict overdraft fees charged by the largest banks. The rule, finalized in December 2024, would have limited how banks charge overdraft fees on accounts at very large financial institutions. By disapproving it, Congress prevents the rule from taking effect, allowing large banks to continue their current overdraft fee practices without the new restrictions.
Why we flagged it
This is a Congressional Review Act disapproval resolution that blocks consumer protection regulation. Its sole function is to prevent a CFPB overdraft-fee restriction from taking effect, directly benefiting large financial institutions at the expense of consumer protections.
What the text implies
- Disapproval under the CRA is permanent: the CFPB cannot reissue a substantially similar rule without new congressional authorization, effectively locking in the status quo on overdraft fees at large banks for the remainder of this Congress.
- The rule targeted 'very large financial institutions' (likely those with $10B+ in assets), meaning community banks and smaller lenders remain subject to existing overdraft regulations, creating a two-tier system that favors consolidation.
The full analysis lists 3 implications of this text.
Who stands to gain
Large commercial banks (assets >$10 billion); Financial institutions charging overdraft fees