French HillChairman

Washington, March 5, 2025 -

The House Financial Services Committee, led by Chairman French Hill (AR-02), is considering H.J. Res 59, Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to ‘‘Overdraft Lending: Very Large Financial Institutions,” which comes following a final rule issued by the Consumer Financial Protection Bureau (CFPB) that effectively imposes government price controls on overdraft fees.

Here's what experts and supporters of the Committee’s efforts are saying:  

A study from the Federal Reserve Bank of New York said: “While fee caps succeed in reducing overdraft fees, they also trigger adjustments by banks that limit the financial inclusion of low-income households. Instead, policies promoting increased competition and transparency may be more effective in keeping overdraft fees in line with costs and risk.”

American Bankers Association and 52 state bankers associations said: “If not invalidated, Director Chopra’s rule would lead banks to restrict, if not eliminate, access to overdraft, harming those consumers who have few, if any, other options for meeting short-term liquidity needs. The rule would do so even though analyses show that the average transaction that overdraws the customer’s account is in the hundreds of dollars. Not surprisingly, survey after survey show that consumers appreciate and value their institution’s overdraft program and are glad that their institution covered their overdraft payment, rather than returned or declined the payment.”

American for Tax Reform said: “The CFPB’s basis for proposing the rule lacks merit. No sound reasoning is given for why the CFPB has chosen to pursue this rule besides claiming to uphold consumer rights. The CFPB cannot be allowed to formulate rules out of thin air. The CFPB’s proposed rule will undoubtedly create unwanted market distortions and potentially coerce financial institutions to adhere to benchmark fees arbitrarily set by the CFPB—essentially imposing price controls.”

Americas Credit Unions said: “With this final rule on overdraft protection programs, the CFPB is effectively telling consumers that their financial needs don’t matter if they don't fit the Bureau’s political agenda and is seriously harming consumers who struggle with financial security. … credit unions offer overdraft programs because their members need this option to make ends meet. Credit unions work with their members to overcome financial challenges, but this final rulemaking will make financial services either less available or more expensive – for everyone across the country. As a result of the rule, credit unions will be put in an impossible position. Some may no longer be able to offer an overdraft program because they lack the resources required to undertake the immense operational burden imposed by the rule or cannot afford to run their programs at a loss. This will only hurt and further disadvantage consumers.”

Consumer Bankers Association (CBA) President and CEO Lindsey Johnson said:“This rule is a blatant overreach—one the Bureau never had the authority to impose in the first place. Millions of hardworking Americans, including the one in five without access to credit, rely on overdraft services as a valuable financial lifeline, yet the Biden-Chopra CFPB’s overdraft rule threatens to cut off their access to this essential bank product.”

Defense Credit Union Council Chief Advocacy Officer Jason Stverak said: “The CFPB’s rule on overdraft fees is yet another example of regulatory overreach that threatens the financial stability of credit unions and the communities they serve. The Bureau’s approach fails to recognize that overdraft protection is a valued service that provides financial flexibility and prevents more harmful consequences, such as declined transactions, missed payments, and costly payday loans. For military families, who often face unique financial challenges due to deployments, relocations, and inconsistent pay schedules, overdraft protection can serve as an essential financial tool.”

Independent Community Bankers of America (ICBA) President & CEO Rebecca Romero Rainey said: “Ultimately, the CFPB’s rule would force many community banks to stop offering overdraft services to their customers, resulting in significantly more bounced checks and declined debit card transactions. The rule may not only reduce access to services but could create a chilling effect on financial inclusion efforts, and force unbanked and underbanked consumers to predatory options.”

National Taxpayers Union said: “The CFPB chose to ignore the industry’s efforts to help Americans in need, including the majority of NSF fees paid by Americans, and instead forced this harmful rule on the industry that would hurt the very community it is meant to help… This rule will force all banks to offer overdraft products at government-imposed prices, hindering innovation, limiting competition, and hampering the industry’s availability to provide these essential products in the future.”

U.S. Chamber of Commerce and Mississippi Economic Council said: “If [very large financial institutions] start charging no more than $5 per overdraft, the reduced fee income may cause them to end consumer-friendly features that they are currently able to offer as part of their discretionary overdraft program, such as grace periods, waiving overdraft fees for transactions below a certain amount, or limiting the number of overdraft fees a consumer may incur per day.”