House passes resolution to nullify CFPB’s overdraft rule

The House voted 217-211 to advance its resolution of disapproval for the CFPB’s overdraft rule Wednesday. The Senate passed its version last month, and the White House has indicated President Donald Trump will sign the resolution, nullifying the rule via Congressional Review Act.  

The rule caps overdraft fees at $5 for financial institutions with more than $10 billion in assets. America’s Credit Unions has consistently warned policymakers that the rule will lead to more consumers turning to unregulated and potentially predatory providers if they do not have access to overdraft services at their financial institutions.  

"America's Credit Unions supports using all tools available to pull back any overreach of the CFPB's statutory authority. The bureau's overdraft rule is a solution in search of a problem, an attempt to eliminate a product deemed 'unsuitable' by Washington bureaucrats but vital to many credit unions’ members,” said Jim Nussle, America’s Credit Unions president/CEO. “Credit unions are the original consumer protectors that are serving forgotten communities across the country. We appreciate the House's action to stop regulatory overreach and preserve necessary financial products and services for hard-working Americans.”  

America’s Credit Unions supported efforts on all fronts to overturn the rule, including filing a legal challenge against the rule, with 18 state leagues and associations filing a brief in support of the challenge.