A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
Sponsored by Tim Scott
Became Public Law No: 119-10.
May 9, 2025
This joint resolution nullifies a Consumer Financial Protection Bureau rule on overdraft lending at very large financial institutions that was issued on December 30, 2024. The rule being nullified would have required these institutions to either cap overdraft charges at $5, cap charges at a higher amount with justification, or treat overdrafts as credit and comply with Truth in Lending Act disclosure requirements. By passing this resolution, the rule is repealed and does not take effect.
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This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau titled Overdraft Lending: Very Large Financial Institutions and published on December 30, 2024. The rule revises provisions regarding charges for insufficient funds in a customer’s bank account (i.e., overdrafts) at very large financial institutions. Under the rule, these institutions must (1) cap overdraft charges at $5; (2) with justification, cap charges at a higher amount; or (3) handle overdrafts as credit and comply with applicable Truth in Lending Act disclosure requirements.