Congress kills CFPB overdraft-fee limits for big banks
S.J.Res. 18 — A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions". · Filed by Tim Scott (R-SC) · 16 cosponsors · Introduced Feb 13, 2025 · Signed
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This resolution uses the Congressional Review Act to block a Consumer Financial Protection Bureau rule that would have restricted overdraft fees charged by large banks. The rule is nullified and has no legal effect. Banks keep their current overdraft-fee practices.
Why we flagged it
The bill's sole function is to eliminate a consumer-protection rule limiting overdraft fees at large financial institutions. It is a straightforward deregulatory action using the Congressional Review Act mechanism.
What the text implies
- Overdraft fees disproportionately affect lower-income consumers and those with volatile income; elimination of the rule perpetuates a regressive fee structure.
- The rule was finalized in December 2024 after a lengthy CFPB rulemaking process; disapproval signals Congressional rejection of executive-branch consumer protection authority.
The full analysis lists 3 implications of this text.
Who stands to gain
large commercial banks; financial institutions subject to the overdraft rule