Congress blocks CFPB's rollback of overdraft protections
S.J.Res. 130 — A joint resolution 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 withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices". · Filed by Chris Van Hollen (D-MD) · Introduced Mar 18, 2026 · Reported out
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What it does
This resolution uses Congress's disapproval power to block a CFPB rule that withdrew consumer protections against improper overdraft opt-in practices. The net effect: the CFPB's withdrawal is nullified, and the original consumer protection circular (2024-05) is restored and remains in force.
Why we flagged it
The resolution restores a withdrawn consumer protection rule via Congressional Review Act disapproval. It is a straightforward accountability measure that reverses a deregulatory action by the executive branch.
What the text implies
- Banks lose discretion to charge overdraft fees without explicit opt-in consent; this may reduce overdraft revenue but protects low-income consumers most vulnerable to surprise fees.
- The CFPB's authority to withdraw consumer protections is constrained by Congress's CRA disapproval power; this signals congressional intent to preserve overdraft protections.
The full analysis lists 3 implications of this text.
Who it affects
Ordinary consumers retain protections against improper overdraft opt-in practices. The resolution blocks a deregulatory move by the CFPB, preserving rules that require explicit consumer consent before banks charge overdraft fees.