A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices".

What This Bill Does

This bill is a Congressional disapproval resolution, which is a specific tool Congress can use to cancel or block a federal agency rule. In this case, Congress is trying to stop the Consumer Financial Protection Bureau (CFPB) from withdrawing a guidance document it had previously issued — known as "Consumer Financial Protection Circular 2024-05" — which addressed potentially unfair practices related to overdraft opt-in agreements at banks and financial institutions.

Some Background

When you open a bank account, you are often asked whether you want to "opt in" to overdraft coverage, which allows transactions to go through even when you don't have enough money in your account — but typically comes with a fee. The original 2024 CFPB circular warned that certain ways banks were getting customers to sign up for this coverage could be considered improper or deceptive. More recently, the CFPB moved to withdraw that guidance, and this bill would use congressional authority to block that withdrawal, effectively keeping the original consumer protection guidance in place.

Who It Affects

This bill would primarily affect banks, credit unions, and other financial institutions that offer overdraft programs, as well as everyday bank customers — particularly those with checking accounts who may be enrolled in or considering overdraft coverage. If the bill passes, the original CFPB guidance warning against improper opt-in practices would remain active, meaning financial institutions would still be on notice that deceptive overdraft enrollment tactics could face regulatory scrutiny.

The bill was introduced in the Senate and has been referred to the Committee on Banking, Housing, and Urban Affairs, where it will be reviewed before any further action is taken.