Credit: The White House via Wikimedia Commons
President Donald Trump has signed a Congressional Review Act (CRA) resolution to overturn the Consumer Financial Protection Bureau’s (CFPB) controversial final rule on overdraft services, drawing praise from the credit union and community banking industries.
The now-nullified rule would have reclassified overdraft programs as credit under the Truth in Lending Act (TILA), a move that critics said exceeded the agency’s authority and risked restricting a popular consumer service.
Recommended For You
“ICBA and the nation’s community banks commend President Trump and Congress for enacting this critical resolution,” said Independent Community Bankers of America President/CEO Rebeca Romero Rainey. “The CFPB overdraft rule would have had harmful unintended consequences on the consumers and local communities that community banks serve by causing them to experience the harsh realities of rejected payments.”
Romero Rainey further noted that existing regulations clearly define overdrafts as not being extensions of credit, and that community banks offer a variety of solutions, including alerts and account transfers, to help consumers manage their accounts.
Credit unions also applauded the reversal. “With President Trump’s signature, the overly broad CFPB rule is now nullified,” said America’s Credit Unions President/CEO Jim Nussle in a prepared statement. “Credit unions provide their members with solutions to challenging financial problems every day, and overdraft protection is one of those valuable solutions.”
The CFPB rule, finalized in December 2024, applied only to financial institutions with assets exceeding $10 billion and required them to either cap most overdraft fees at $5 or classify overdraft programs as credit under the TILA. Credit union advocates argued this would create significant compliance burdens and drive up costs.
The CRA resolution, supported by Senate Banking Committee Chairman Tim Scott (R-S.C.) and House Financial Services Committee Chairman French Hill (R-Ark.), prevents the CFPB from issuing a substantially similar rule in the future.
In early April, the U.S. House of Representatives narrowly passed the resolution to repeal the CFPB’s overdraft rule with a 217-211 vote. The resolution previously passed the Senate by a 52-48 margin.
Industry advocates say the decision ensures that consumers will continue to have access to tailored overdraft options offered by credit unions and community banks, rather than being subject to blanket regulatory restrictions.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
