The House Financial Services Committee today voted to advance a joint resolution to invalidate the Consumer Financial Protection Bureau’s final rule on overdraft protection.
The CFPB rule requires banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act. H.J. Res. 59 would overturn the rule if adopted by both the House and Senate and signed by President Trump. The resolution was introduced in the House by committee Chairman French Hill (R-Ark.) with Senate Banking Committee Chairman Tim Scott (R-S.C.) sponsoring the resolution in that chamber.
The committee voted 30-19 to report the resolution to the House. In a statement, ABA President and CEO Rob Nichols said the association applauded the vote to overturn the “misguided overdraft rule.”
“The bureau’s rule was flawed and unlawful from the start, and went against the wishes of a strong majority of Americans who have repeatedly indicated that they value and appreciate overdraft protection,” Nichols said. “By demonizing these highly regulated and transparent bank fees and attempting to implement government price controls, the rule would make it significantly harder for banks to provide this valuable service.”
