ICBA commended the Senate for passing a resolution to overturn the Consumer Financial Protection Bureau’s final rule on overdraft services.
Details: The ICBA-supported Congressional Review Act resolution, S.J. Res 18, passed the Senate by a 52-48 vote. It now moves to the House of Representatives, where a vote is expected as soon as next week—requiring ongoing community banker grassroots outreach to Congress.
House Outreach: Community bankers can continue using ICBA’s Be Heard grassroots action center to urge their representatives to support the congressional resolution before the House vote next week.
Statement: In a national news release, ICBA President and CEO Rebeca Romero Rainey encouraged the House to pass its version of the resolution to avoid unintended consequences for consumers that rely on overdraft services.
About the Resolutions: If passed by Congress and signed into law by President Donald Trump, the resolution would invalidate the CFPB’s rule, which would cap fees at financial institutions with more than $10 billion in assets.
About the Rule: Scheduled to take effect on Oct. 1, 2025, the rule would impose three options for covered banks to manage their overdraft lending programs:
Cap their overdraft fee at $5.
Charge a fee that covers no more than costs or losses.
Extend overdraft services by treating them as extensions of credit and complying with federal lending laws, including disclosing any applicable interest rate.
Ongoing Legal Challenge: ICBA in January signed a joint amicus brief in support of a motion for a preliminary injunction against the CFPB's overdraft rule, saying the rule is likely to negatively affect consumers and their access to banking services and should be legally stopped.
More: In a national press release after the rule was issued in December, ICBA said it strongly opposes the rule, and could force consumers to rely on payday lenders and other unscrupulous funding sources. In a comment letter last year, ICBA urged the CFPB to withdraw the measure.
