Senate Banking Committee Chairman Tim Scott (R-S.C.) and House Financial Services Committee Chairman French Hill (R-Ark.) have introduced Congressional Review Act (CRA) resolutions to overturn the Biden administration’s Consumer Financial Protection Bureau’s (CFPB) final rule capping overdraft fees at banks and credit unions. The committee leaders argue that the rule would limit access to essential financial services, particularly for low-income individuals who rely on overdraft protection.
The CRA has gained support from several key stakeholders, including the Consumer Bankers Association, the Independent Community Bankers of America, and the American Bankers Association. These organizations claim that the rule is a “blatant overreach” by the CFPB and would harm consumers who rely on overdraft services as a valuable financial lifeline.
The resolution is part of a broader effort to rein in the CFPB’s enforcement powers and limit its ability to impose rules without congressional oversight. Chairman Scott and Chairman Hill have repeatedly criticized Director Rohit Chopra’s midnight rulemaking, arguing that it ignores Congress’s constitutional authority to oversee the agency.
The CRA resolutions aim to overturn the overdraft rule, which was finalized just before President Trump took office in December 2024. If passed, the resolution would prevent the CFPB from implementing the rule and force the agency to review its actions.
The opposition to the rule is bipartisan, with several senators and representatives co-sponsoring Chairman Hill’s resolution. The CRA resolutions mark a significant step forward for lawmakers seeking to limit the CFPB’s powers and protect consumers’ access to financial services.
Source: https://www.banking.senate.gov/newsroom/majority/scott-hill-lead-effort-to-roll-back-biden-era-cfpb-overdraft-rule