Consumer Financial Protection Bureau headquarters in Washington, D.C. Photo: Diego M. Radzinschi/ALM
The Republican-controlled House Financial Services Committee, led by Rep. French Hill (R-Ark.), voted 30-19 to officially disapprove the CFPB’s overdraft final rule on Wednesday; a move that opens the door for the rule to be reversed using the Congressional Review Act (CRA).
The overdraft final rule, announced in December, would reform overdraft fee options for credit unions and banks with assets more than $10 billion. Those financial institutions, according to the final rule, can choose to charge $5 overdraft fee, charge a fee that covers no more than the cost or losses of an overdraft transaction, or charge a fee while disclosing the interest rate of the loan.
Since December, America’s Credit Unions and other financial groups have been fighting the implementation of the rule in court, along with the backing of more than a dozen credit union leagues and associations that filed a brief supporting the legal efforts.
The lawsuit challenging the overdraft rule was jointly filed in the U.S. District Court for the Southern District of Mississippi.
Wednesday’s action by House Committee members brings in the CRA option that allows Congress to review rules issued by federal agencies before the rules take effect. The overdraft final rule was set to go into effect in October, but the CFPB now run by the Trump administration pushed that effective date to Dec. 30.
According to a post published by America’s Credit Unions, the group “supports the Congressional efforts against the CFPB overdraft rule and applauds the resolution as it aligns with the organization’s advocacy priorities.”
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
