A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
Trump Signs Resolution Blocking CFPB's Overdraft Fee Limits on Big Banks
Signed Into Law
This legislation has been enacted.
Legislative Progress
217–211
Key Points
- Congress passed a resolution to stop a new rule from the Consumer Financial Protection Bureau (CFPB). This rule was designed to lower the amount of money big banks can charge you when you spend more than what is in your bank account.
- The original rule targeted very large banks, which are usually those with more than $10 billion in assets. It would have forced these banks to either treat overdrafts like credit cards or limit fees to a much lower price, potentially between $3 and $14.
- By blocking this rule, Congress is allowing these large banks to continue setting their own overdraft fees, which often average around $35 per transaction. This means consumers will likely continue to pay higher fees for overdrawing their accounts.
- Supporters of this move argue that the new limits would have made it too expensive for banks to offer overdraft services at all. They believe this would hurt low-income customers who rely on these services to cover emergency expenses.
- Critics of this action say it protects bank profits at the expense of regular people. They point out that overdraft fees take billions of dollars every year from Americans who are already struggling to pay their bills.
Impact Analysis
Personal Impact
Gig workers often have irregular income and are more likely to overdraft their accounts between paydays. By blocking the rule that would have capped overdraft fees at large banks, these workers will continue facing fees that can average $35 per incident, which can quickly add up when income is unpredictable. The blocked rule would have significantly reduced these costs.
Milestones
Became Public Law No: 119-10.
The President signed it. This is now the law of the land.
Signed by President.
The President signed it. This is now the law of the land.
Presented to President.
Both chambers passed identical text. The President has 10 days to sign it into law or veto it.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by the Yeas and Nays: 217 - 211 (Roll no. 96). (text: CR H1519)
Vote Results
3 votesOn the Motion to Proceed
On the Joint Resolution
Related News
5 articles
Trump Signs Repeals of CFPB Overdraft, Digital Payment Rules
President Donald Trump officially repealed Biden-era CFPB rules capping overdraft fees at $5 for large banks. The measure, passed under the Congressional Review Act, eliminates a rule intended to slash the average $35 charge consumers face, potentially saving families $5 billion annually.
Senate votes to nullify CFPB overdraft rule
The Senate voted 52-48 to pass a Congressional Review Act resolution overturning the CFPB's overdraft rule. While Republicans argued the cap would limit consumer choice, Democrats warned that repealing the $5 cap would significantly raise costs for working families.
House votes to reverse CFPB overdraft rule
The House voted 217-211 to overturn the CFPB's limit on overdraft fees. Industry leaders thanked Congress for acting to ensure banks can continue offering overdraft services that consumers rely on, rather than being forced to discontinue them due to 'unlawful government price caps.'
Source Information
Document Type
Congressional Bill
Official Title
A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
Data Sources
Sponsor
Cosponsors
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