Congress Stops CFPB From Capping Overdraft Fees, Monitoring Big Tech
The two Congressional Review Act resolutions now go to President Trump.
by David Dayen
April 9, 2025
The House of Representatives passed resolutions Wednesday that will nullify two Consumer Financial Protection Bureau (CFPB) rules. As a result, low-income customers will pay an estimated $5 billion more annually in overdraft fees, and Big Tech will get to pursue its ambitions to make payment apps and other financial services products with little regulatory oversight.
The resolutions, which have already passed the Senate and will now head to President Trump, use the powers under the Congressional Review Act to reverse regulatory actions taken by executive branch agencies submitted after a certain date. Once passed, the CRA resolutions both nullify the rule and prevent agencies from taking “substantially similar” actions in the future. President Trump signed 16 CRA resolutions in his first term, and two so far in 2025.
The overdraft fee rule would have capped the fees, charged when customers attempt to withdraw more from their account than they have deposited, to $5. The average overdraft fee is closer to $35. The so-called “larger participant” rule gave the CFPB supervisory authority over non-banks engaged in digital payment app transactions, including companies like Elon Musk’s X, which has eagerly moved toward developing a financial services app.
All House Republicans decided to reveal themselves as objectively pro-junk fee in supporting blocking the overdraft fee rule; only Rep. Ryan Mackenzie (R-PA) voted against the larger participant rule. Sen. Josh Hawley (R-MO) voted against both resolutions in the Senate, but no other Senate Republican did.
https://prospect.org/power/2025-04-09-congress-stops-cfpb-capping-overdraft-fees-monitoring-big-tech/