Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to “Overdraft Lending: Very Large Financial Institutions”.
Key claim: H.J.Res. 59 would nullify the CFPB’s December 2024 final rule that requires very large financial institutions to cap overdraft charges at $5 (or a justified higher amount) or treat overdrafts as credit under the Truth in Lending Act.
Abstract
(HJRES59 · 119th Congress) This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau titled Overdraft Lending: Very Large Financial Institutions and published on December 30, 2024. The rule revises provisions regarding charges for insufficient funds in a customer’s bank account (i.e., overdrafts) at very large financial institutions. Under the rule, these institutions must (1) cap overdraft charges at $5; (2) with justification, cap charges at a higher amount; or (3) handle overdrafts as credit and comply with applicable Truth in Lending Act disclosure requirements. Latest action (2025-03-21): Placed on the Union Calendar, Calendar No. 16.
Why this matters
Overdraft fees are a major consumer-finance revenue line at the largest banks and credit unions, and the CFPB’s December 2024 rule would have sharply limited them or reclassified overdrafts as TILA credit. A Congressional Review Act disapproval resolution would not only void the rule but also bar the CFPB from issuing a substantially similar one without new authorization, effectively locking in the status quo on overdraft pricing at very large institutions.