S.J. Res. 18 · Signed into law · Finance and Financial Sector

A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".

Sponsor: Tim Scott (R-SC)

What it does

• Nullifies the CFPB's December 2024 overdraft rule that would have capped overdraft fees at $5 for very large financial institutions.
• Restores the prior regulatory regime under which large banks could charge overdraft fees without the $5 cap or alternative credit-handling requirement.
• Prevents implementation of CFPB requirements that large banks either justify higher overdraft charges or treat overdrafts as credit subject to Truth in Lending Act disclosures.

Official summary

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.

Latest action

May 9, 2025: Became Public Law No: 119-10.

Committee: Senate Banking, Housing, and Urban Affairs