The U.S. Senate Committee on Banking, Housing and Urban Affairs announced that the Senate passed Chairman Tim Scott’s Congressional Review Act resolution to overturn the Consumer Financial Protection Bureau’s final rule imposing new price controls on overdraft services offered by banks and credit unions. In floor remarks, Scott argued that capping overdraft fees would reduce overdraft availability, limit consumer choice and increase the number of unbanked Americans. He also cited a Federal Reserve Bank of New York study stating that overdraft fee caps can hinder financial inclusion by leading banks to reduce overdraft coverage and deposit supply, resulting in more returned checks and a decline in account ownership among low-income households.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-03-27
U.S. Senate Committee on Banking, Housing and Urban Affairs reports Senate passage of Scott CRA resolution to overturn CFPB overdraft rule
The U.S. Senate Committee on Banking, Housing and Urban Affairs announced the Senate's passage of Chairman Tim Scott’s resolution to overturn the Consumer Financial Protection Bureau's rule on overdraft service price controls. Scott argued that fee caps would limit consumer choice and increase unbanked populations, citing a Federal Reserve Bank of New York study on potential negative impacts on financial inclusion.