# What This Bill Actually Does

Congress is trying to block a new rule from the Consumer Financial Protection Bureau (CFPB) that would regulate overdraft fees at large banks. When you overdraw your bank account—spending more money than you have—banks typically charge you an overdraft fee, often $30 to $35 per transaction. The CFPB's rule would require the biggest financial institutions to be more careful about how they handle overdrafts and potentially limit how much they can charge you.

This bill is a "disapproval resolution," which is Congress's way of saying "we don't want this rule to exist." If it passes, it would essentially kill the CFPB's overdraft regulation before it can take effect. This means large banks would continue operating under the current system without new restrictions on overdraft practices. The banks would keep their freedom to charge overdraft fees as they currently do, without the additional oversight the CFPB rule would have imposed.

Who this affects most is everyday people who use checking accounts at major banks. If you've ever overdrafted your account, you know those fees add up quickly—especially if you make multiple small purchases that each trigger a separate overdraft charge. The CFPB's rule would have given you more protection against surprise fees and potentially required banks to offer better alternatives. Without it, your bank account remains vulnerable to these charges just as it is today. Supporters of the bill argue that new regulations could make banking more expensive for everyone, while opponents say the rule protects consumers from unfair fees.

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

Scott, Tim

<p>This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau titled <em>Overdraft Lending: Very Large Financial Institutions</em> 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&nbsp;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.</p>