Pulaski Times

Incoming House Financial Services Committee Chairman French Hill has expressed opposition to a recent decision by the Consumer Financial Protection Bureau (CFPB) regarding overdraft fees. The CFPB announced a final rule to cap these fees at $5, a move that has been met with resistance from some lawmakers and industry groups.

"Incoming Senate Banking Committee Chairman Tim Scott and I were clear when we told federal agencies – including the CFPB - to put their ‘pens down’ and stop all midnight rulemaking," Hill stated. "Director Chopra blatantly disregarded our request by finalizing this rule. Capping overdraft services is another form of government price controls that hurts consumers who deserve financial protections and greater choice."

Hill emphasized the need for oversight of the CFPB, stating, "As I have said repeatedly, the CFPB needs guardrails on its enforcement and rulemaking powers, and this rule is another clear example of why. The CFPB should answer to Congress just like any other non-independent federal agency, and I will work with Chairman Scott and my fellow Republicans to rein in the agency with statutory direction."

The American Bankers Association (ABA), along with other financial trades and banks, has taken legal action against the implementation of this rule. A motion for a preliminary injunction was filed in the Southern District of Mississippi’s Fifth Circuit aiming to prevent the CFPB from moving forward with its decision.