On May 9, President Trump signed a Congressional Review Act resolution repealing the CFPB's final rule restricting overdraft fees at large financial institutions. The rule, originally finalized under the Biden administration, would have imposed new limits on overdraft fees charged by banks with over $10 billion in assets.
The repealed rule, which was set to take effect on October 1, 2025, would have capped overdraft fees at $5 unless banks could demonstrate actual cost justification or treat overdraft coverage as a credit product under the Truth in Lending Act.
Putting It Into Practice: The CFPB's overdraft rule is now void, and the Bureau is barred from issuing a substantially similar regulation in the future under the Congressional Review Act. While large depository institutions are no longer subject to federal overdraft fee caps, they should remain attentive to state-level regulatory activity concerning fees.
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