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Congress·In Committee·S.J.Res. 130

Sen. Van Hollen Pushes to Restore Protections Against Sneaky Bank Overdraft Fees

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".

3 days ago·View on Congress.gov

Legislative Progress

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Key Points

  • Sen. Van Hollen introduced a Congressional Review Act resolution to block the CFPB's decision to withdraw its 2024 guidance on improper overdraft opt-in practices. If passed, the withdrawal would be nullified and the original consumer protections would remain in effect.

    From policy text

    “Congress disapproves 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 (89 Fed. Reg. 80075 (October 2, 2024))'' (90 Fed. Reg. 20084 (May 12, 2025)), and such rule shall have no force or effect.”
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  • The original CFPB circular from October 2024 addressed deceptive or misleading tactics banks use when asking customers to opt in to overdraft coverage — a service that often triggers expensive fees when people spend more than what's in their checking accounts.

    From policy text

    “Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices (89 Fed. Reg. 80075 (October 2, 2024))”
    View in full text
  • The CFPB under new leadership withdrew that circular in May 2025, effectively removing the enforcement guidance that held banks accountable for unfair overdraft opt-in practices. This resolution aims to reverse that withdrawal.

    From policy text

    “(90 Fed. Reg. 20084 (May 12, 2025)), and such rule shall have no force or effect.”
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  • The resolution was introduced on March 18, 2026, and referred to the Senate Committee on Banking, Housing, and Urban Affairs. As a CRA resolution, it faces an uphill battle in the current political environment but highlights ongoing concerns about consumer financial protection rollbacks.

    From policy text

    “Mr. Van Hollen introduced the following joint resolution; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs”
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Economy Finance

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Mar 18, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Mar 18, 2026

Introduced in Senate

Source Information

Document Type

Congressional Bill

Official Title

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".

Bill NumberSJRES 130
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsor

Analysis generated by AI. Always verify with official sources.