House Votes to Reverse CFPB Overdraft Rule
Posted: Apr 16 2025
The U.S. House has today voted in favor of a resolution to overturn the CFPB’s limit on overdraft fees. The 217-211 vote came less than two weeks after the Senate passed its version of the resolution.
The CFPB overdraft limit requires banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act. The American Bankers Association has joined the Mississippi Bankers Association and others in challenging the rule in court. ABA has endorsed both resolutions to overturn the rule.
In a statement, ABA President and CEO Rob Nichols thanked Senate Banking Committee Chairman Tim Scott (R-S.C.) and House Financial Services Committee Chairman French Hill (R-Ark.) for their leadership on the issue.
“Consumers have indicated time and time again that they value and appreciate this highly regulated service and don’t want banks to discontinue offering it because of a rule that imposes unlawful government price caps,” Nichols said. “Congress has acted decisively to right that wrong and ensure America’s banks can continue offering this important, optional service consumers rely upon to meet their short-term financial needs. We appreciate the administration’s support and look forward to President Trump quickly signing this resolution into law.”