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Congress Overturns CFPB's Overdraft Fee Cap and Tech Oversight Rules

The House and Senate passed resolutions nullifying Biden-era consumer protections, now awaiting President Trump's signature to finalize the repeal.

Demonstrators take part in a protest by the Consumer Financial Protection Bureau (CFPB) building, the day after members of Elon Musk's Department of Government Efficiency (DOGE) moved into the CFPB, in Washington, U.S. February 8, 2025. REUTERS/Nathan Howard
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The name and logo for the Consumer Financial Protection Bureau (CPFB) is seen scraped off the door of its building in Washington, D.C., U.S., February 20, 2025. REUTERS/Brian Snyder

Overview

  • The House voted 217-211 to nullify two CFPB rules: a $5 cap on overdraft fees and increased oversight of tech companies' payment services.
  • The Senate previously approved the resolutions, and they now await President Trump's signature to take full effect.
  • The overdraft fee cap was projected to save consumers $5 billion annually, particularly benefiting low-income households.
  • Republican lawmakers argued the rules represented government overreach, claiming they would reduce consumer access to overdraft protection and emergency credit.
  • The Congressional Review Act resolutions not only repeal the rules but also prevent the CFPB from enacting similar regulations in the future, weakening its oversight authority.