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

House Joint Resolution

H.J.Res. 59

119th Congress

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

Placed on the Union Calendar, Calendar No. 16.

Introduced:Feb 13, 2025

Primary Sponsor

Dan Crenshaw

Representative

Republican

TX-2

Cosponsors

17

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This joint resolution nullifies the CFPB rule capping overdraft fees at large banks. The December 2024 rule required very large financial institutions to either cap overdraft charges at 5 dollars, justify a higher cap, or treat overdrafts as credit under Truth in Lending Act requirements. Passage would restore banks ability to charge higher overdraft fees.

Latest Action

Placed on the Union Calendar, Calendar No. 16.

AI Summary

Plain-English explanation of this bill

This joint resolution nullifies the CFPB rule capping overdraft fees at large banks. The December 2024 rule required very large financial institutions to either cap overdraft charges at 5 dollars, justify a higher cap, or treat overdrafts as credit under Truth in Lending Act requirements. Passage would restore banks ability to charge higher overdraft fees.

Last updated: 12/30/2025

Official Summary

Congressional Research Service summary

<p>This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau titled <em>Overdraft Lending: Very Large Financial Institutions</em> 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.</p>

Key Points

Main provisions of the bill

Nullifies CFPB overdraft fee cap rule from December 2024
Would restore large bank ability to charge higher overdraft fees
Rule required 5 dollar cap or TILA compliance
Uses Congressional Review Act to overturn regulation
Affects very large financial institutions only
Prevents CFPB from issuing similar rules without new legislation

How This Impacts Americans

Potential effects on citizens and communities

This resolution would eliminate consumer protections limiting overdraft fees at large banks. The CFPB estimates the rule would save consumers billions annually. Supporters of nullification argue banks need overdraft revenue to offer free checking accounts and that the rule exceeded CFPB authority. Critics contend overdraft fees disproportionately burden low-income customers. If passed under CRA, CFPB cannot issue substantially similar rules, removing this consumer protection indefinitely.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Related Subjects

Administrative law and regulatory procedures

Bank accounts, deposits, capital

Banking and financial institutions regulation

Congressional oversight

Consumer Financial Protection Bureau

User charges and fees

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

59, 119th Congress (2025). "Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".". Source: Voter's Right Platform. https://votersright.org/bills/118-hjres-59