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 the withdrawal of the rule relating to "Consumer Financial Protection Circular 2022-06: Unanticipated Overdraft Fee Assessment Practices".

Key Points

• This resolution uses the Congressional Review Act to block the CFPB from withdrawing its 2022 guidance on unanticipated overdraft fee practices. If passed, the original consumer protections would remain in effect and the agency could not issue a substantially similar withdrawal in the future.
• The resolution was introduced by Senator Warren and referred to the Senate Banking, Housing, and Urban Affairs Committee. As a CRA resolution, it has a special fast-track process in the Senate but still faces significant political hurdles to passage.
• The underlying 2022 circular targeted banks that charge overdraft fees customers could not have anticipated or avoided, such as when a transaction is authorized with sufficient funds but later posts to an insufficient balance due to processing order. Keeping this guidance in place would pressure banks to stop these practices.
• Overdraft fees cost American consumers billions of dollars each year and fall disproportionately on low-income households and communities of color. Blocking the withdrawal of these protections would help the people most vulnerable to unexpected bank charges.