Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".

Summary

This joint resolution seeks to disapprove a final rule issued by the Bureau of Consumer Financial Protection (CFPB) concerning overdraft lending practices of very large financial institutions, as published in the Federal Register on December 30, 2024 (89 Fed. Reg. 106768). The CFPB rule, titled 'Overdraft Lending: Very Large Financial Institutions,' establishes regulations governing how banks with over $10 billion in assets may charge fees for overdraft services, including limitations on fee amounts, requirements for transparent disclosure of costs, and restrictions on certain practices deemed abusive or unfair to consumers. Under the Congressional Review Act (CRA), Congress has the authority to overturn such agency rules through a joint resolution of disapproval, which, if passed by both chambers and signed by the President (or enacted over a veto), nullifies the rule and prevents the agency from issuing a substantially similar rule in the future without specific congressional authorization. H.J. Res. 59 represents an exercise of this CRA authority, aiming to block the CFPB's overdraft rule from taking effect. Proponents of the resolution argue that the rule oversteps the CFPB's authority, imposes unnecessary costs on banks that could be passed to consumers, and interferes with market-based pricing of financial services. Opponents contend that the rule is necessary to protect consumers from predatory overdraft fees that disproportionately affect low-income and vulnerable populations, and that overturning it would allow large banks to continue exploitative practices. The measure does not propose a constitutional amendment and follows the standard legislative path for a joint resolution under the CRA.

Where Each Party Stands

History