Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".

Plain-English Summary

This bill would cancel a regulation created by the Consumer Financial Protection Bureau (CFPB) that placed new limits on overdraft fees charged by large banks and credit unions. The CFPB rule in question applied to financial institutions with more than $10 billion in assets — essentially the largest banks in the country — and would have capped the fees they can charge customers when they spend more money than they have in their accounts. Under the CFPB's rule, overdraft fees would have been significantly reduced from the typical $25–$35 that many large banks currently charge.

Congress has the authority to overturn federal agency rules through a process called the Congressional Review Act, and this bill is an example of that process in action. If passed and signed into law, this bill would officially nullify the CFPB's overdraft rule, meaning it would never take effect and the existing, higher fee structures at large banks could remain in place.

Who this affects: This bill primarily impacts everyday bank customers — particularly those who occasionally overdraw their checking accounts — at large financial institutions. If the CFPB rule were allowed to stand, those customers could have saved money on overdraft fees. If this bill passes, large banks would retain more flexibility to set their own overdraft fee amounts. The bill also affects large banks and credit unions, which stood to lose significant fee revenue under the CFPB regulation.

This bill has passed out of the House Financial Services Committee and is awaiting a full vote in the House of Representatives.