A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
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Congress has nullified the Consumer Financial Protection Bureau's rule that would have capped overdraft fees at $5 for the nation's largest banks, restoring the status quo before the December 2024 regulation took effect.
The repeal means that very large financial institutions — those with more than $10 billion in assets — face no new federal cap on the overdraft charges they may impose on customers, a consequential rollback of a major consumer-finance protection.
What this law does
What it does
This joint resolution, enacted under the Congressional Review Act, nullifies the Consumer Financial Protection Bureau's final rule titled "Overdraft Lending: Very Large Financial Institutions" (89 Fed. Reg. 106768, published December 30, 2024). The resolution declares that rule to have no force or effect. The CFPB rule would have required very large financial institutions to either cap overdraft charges at $5, cap charges at a higher justified amount, or treat overdrafts as credit subject to Truth in Lending Act disclosure requirements. The resolution voids all three of those requirements.
By nullifying the rule, the resolution leaves overdraft fee practices at large financial institutions governed by prior law, with no new federal cap or mandatory disclosure framework imposed by the CFPB's 2024 rulemaking.
Key provisions
- 1Nullifies the CFPB's final rule on overdraft lending at very large financial institutions, declaring it to have no force or effect.
Who is affected
Bank customers who use overdraft services at very large financial institutions — generally banks and credit unions with more than $10 billion in assets — who would have benefited from the $5 fee cap or enhanced disclosures. The Consumer Financial Protection Bureau, whose 2024 rulemaking is voided. Large financial institutions that were preparing to comply with the rule are relieved of that obligation.
Why it matters
Customers at large banks who overdraw their accounts will continue to face overdraft fees as set by their institutions, with no new $5 cap or mandatory credit-style disclosure requirements. For consumers who regularly incur overdraft charges — fees that have historically averaged well above $5 — the nullification removes a significant cost-reduction mechanism that the 2024 rule would have provided.
What changed
Changes to existing law
Repeals CFPB Final Rule: Overdraft Lending: Very Large Financial Institutions (89 Fed. Reg. 106768)
Voids the rule in its entirety, eliminating the $5 overdraft fee cap and Truth in Lending Act disclosure requirements for large institutions.
Agencies directed to act
Effective dates
- Resolution enacted; CFPB overdraft rule rendered void
Legislative status & sources
Latest action
Became Public Law No: 119-10.
Official CRS summary
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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.
Legislative subjects
Administrative law and regulatory procedures; Bank accounts, deposits, capital; Banking and financial institutions regulation; Congressional oversight; Consumer Financial Protection Bureau; Finance and Financial Sector; User charges and fees