Palmetto State News

Senate Banking Committee Chairman Tim Scott and House Financial Services Committee Chairman French Hill have introduced Congressional Review Act resolutions to overturn a Consumer Financial Protection Bureau (CFPB) rule from the Biden administration. The rule caps overdraft fees at banks and credit unions, which the committee leaders argue impacts access to essential financial services.

Chairman Scott's resolution is supported by several senators, including Mike Crapo, Roger Wicker, Jim Risch, Jerry Moran, John Boozman, Mike Rounds, Thom Tillis, Kevin Cramer, Cynthia Lummis, Bill Hagerty, Katie Boyd Britt, Pete Ricketts, and Bernie Moreno. Representatives co-sponsoring Chairman Hill’s resolution include Bill Huizenga, Ann Wagner, Andy Barr, Roger Williams, William Timmons, Ralph Norman, Dan Meuser, Byron Donalds, Andy Ogles, Maria Salazar, Troy Downing, Mike Haridopolos; Tim Moore; and Glenn Grothman.

“The Biden administration’s CFPB routinely targeted legitimate payment incentives and practices in pursuit of political headlines over sound policies," said Chairman Scott. He emphasized that many consumers rely on overdraft services to make ends meet and that limiting this practice could push Americans toward riskier financial products.

Chairman Hill added: "The CFPB needs guardrails on its enforcement and rulemaking powers... Our CRA will help overturn this harmful rule." He stressed the importance of ensuring the CFPB halts ongoing rules until it answers to Congress like other non-independent federal agencies.

The CRA has garnered support from key stakeholders such as the Consumer Bankers Association (CBA), Independent Community Bankers of America (ICBA), American Bankers Association (ABA), America's Credit Unions; and the Bank Policy Institute. Lindsey Johnson of CBA stated that millions rely on overdraft services as a financial lifeline and that the rule threatens access to this essential product. Rebeca Romero Rainey of ICBA argued that community banks offer beneficial products in a competitive marketplace but face negative effects due to arbitrary restrictions imposed by the CFPB's rule.

Rob Nichols of ABA noted that "this flawed rule exceeds the Bureau's statutory authority" and urged members to support overturning it through the CRA resolution.

Previously in November 2024; Chairman Scott called for an end to all rulemaking activity by financial regulators under President Biden. In December 2024; both Chairmen expressed opposition after Director Rohit Chopra finalized what they termed midnight rulemaking with aggressive agendas before President Trump took office.