President Trump has signed a Congressional Review Act (CRA) resolution nullifying the CFPB's controversial overdraft rule.
The rule was issued by the Biden Administration and had attracted opposition from Republicans on Capitol Hill and Trump Administration officials. House and Senate Republicans pushed a CRA resolution through Congress, which Trump has now signed, voiding the rule.
If it had been allowed to go into effect as issued, the rule would have limited overdraft fees to $5 at financial institutions with more than $10 billion in assets, unless they set a cap that covered their actual costs or they treated the payment of an overdraft as a loan and gave appropriate disclosures under the Truth in Lending Act and Regulation Z.
Financial trade groups sued, challenging the rule, which was scheduled to go into effect on October 1, 2025. However, anticipating changes to the rule, Acting OMB and CFPB Director Russell Vought asked for a stay in the lawsuit.
Trump had no comment when he signed the resolution. However, Office of Management and Budget officials had previously issued a Statement of Administration Policy saying the rule would have resulted in "six million consumers facing higher fees and more bounced checks. It also [would have limited] consumer choice by depriving Americans of the option to choose overdraft services to meet short-term liquidity needs, forcing them into higher-cost financial products. Overturning this rule would advance this Administration's deregulatory agenda."
Congressional sponsors of the nullification resolution applauded Trump's veto.
"The rule would have reduced access to credit and important financial services and resulted in more unbanked Americans," Senate Banking Chairman Sen. Tim Scott, R-S.C., said.
House Financial Services Chairman Rep. French Hill, R-Ark., also said he supported Trump having signed the resolution.
"Americans voted for consumer choice, not government overregulation," he said.
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