The U.S. Senate Committee on Banking, Housing and Urban Affairs published a majority press release highlighting the U.S. Senate’s 52-48 passage of a Congressional Review Act resolution to disapprove the Consumer Financial Protection Bureau (CFPB) rule on overdraft fees, with the House needing to act for the disapproval to take effect. The rule is described as effectively capping what banks can charge when consumers overdraw checking accounts at USD 5 per transaction, compared with an average of about USD 35, and as treating certain overdraft fees as loans subject to additional regulatory requirements. The release referenced floor remarks by Senator Tim Scott, the sponsor, that fee caps could reduce or eliminate overdraft coverage and lead banks to raise other fees, and it cited a Federal Reserve Bank of New York study indicating such caps can reduce overdraft coverage and deposit supply. Under the Congressional Review Act process described in the release, the resolution would also require House approval and the President’s signature within a 60-day window to nullify the rule.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-03-28
U.S. Senate Committee on Banking, Housing and Urban Affairs announces Senate passage of resolution disapproving CFPB overdraft fee cap rule
The U.S. Senate Committee on Banking, Housing and Urban Affairs announced the Senate's 52-48 approval of a resolution to disapprove the Consumer Financial Protection Bureau's rule capping overdraft fees at USD 5 per transaction. The rule treats certain overdraft fees as loans, potentially reducing overdraft coverage and prompting banks to raise other fees. The resolution requires House approval and the President's signature to take effect.