The House today voted in favor of a resolution to overturn the Consumer Financial Protection Bureau’s limit on overdraft fees. The 217-211 vote came less than two weeks after the Senate passed its version of the resolution.
The CFPB overdraft limit 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. The American Bankers Association has joined the Mississippi Bankers Association and others in challenging the rule in court. ABA has endorsed both resolutions to overturn the rule.
In a statement, ABA President and CEO Rob Nichols thanked Senate Banking Committee Chairman Tim Scott (R-S.C.) and House Financial Services Committee Chairman French Hill (R-Ark.) for their leadership on the issue.
“Consumers have indicated time and time again that they value and appreciate this highly regulated service and don’t want banks to discontinue offering it because of a rule that imposes unlawful government price caps,” Nichols said. “Congress has acted decisively to right that wrong and ensure America’s banks can continue offering this important, optional service consumers rely upon to meet their short-term financial needs. We appreciate the administration’s support and look forward to President Trump quickly signing this resolution into law.”
The Senate also voted 213-206 on a separate resolution to overturn a CFPB rule allowing it to regulate large nonbank firms that provide digital payments services, including peer-to-peer payments, mobile wallets and other payment apps. The rule only applies to providers that conduct more than 50 million transactions annually, and it excludes services for cryptocurrency and other digital assets.
