Proposed Congressional Resolutions Aim to Overturn CFPB’s Overdraft Rule

Congressional Review Act (CRA) resolutions introduced Thursday (Feb. 13) in the U.S. House and Senate would overturn the Consumer Financial Protection Bureau’s (CFPB) final rule capping overdraft fees.

The resolutions were introduced by House Financial Service Committee Chairman French Hill, R-Ark., and Senate Banking Committee Chairman Tim Scott, R-S.C., according to Thursday press releases.

“The CFPB’s actions on overdraft is another form of government price controls that hurt consumers who deserve financial protections and greater choice,” Hill said in a press release. Hill introduced a CRA resolution in the House.

Scott, who introduced a CRA resolution in the Senate, said in a press release that the Biden administration’s CFPB targeted “legitimate payment incentives and practices.”

“The overdraft rule was yet another example — many consumers rely on overdraft services to make ends meet and limiting this practice will push Americans to riskier financial products,” Scott said in the release.

The Congressional Review Act enables Congress to review federal agencies’ new rules and, if they do not approve, enact a resolution of disapproval that means the rule has no force or effect, according to the Government Accountability Office.

The CFPB unveiled its overdraft fee regulations for large banks and credit unions on Dec. 12, saying it aimed to close what it called an “outdated overdraft loophole” in lending laws.

The rule, set to take effect Oct. 1, 2025, applies to banks and credit unions with assets exceeding $10 billion. It requires affected institutions to choose one of three options for their overdraft programs: cap overdraft fees at $5; set fees to cover only costs and losses; or comply with standard lending laws, including interest rate disclosures.

“The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rates they’re charging on overdraft loans,” then-CFPB Director Rohit Chopra said at the time in a press release.

On the same day the overdraft rule was unveiled, four trade associations and three banks filed a lawsuit alleging that the CFPB exceeded its regulatory authority with this new regulation and that it did not appropriately consider how its actions will harm consumers.