Pulaski Times

U.S. Senator John Boozman, Senate Banking Committee Chairman Tim Scott, and House Financial Services Committee Chairman French Hill have introduced a Congressional Review Act (CRA) resolution aimed at overturning a Biden administration rule on overdraft fees. The Consumer Financial Protection Bureau’s (CFPB) rule limits overdraft fees at banks and credit unions, a measure the lawmakers argue restricts access to essential financial services.

Senator Boozman criticized the CFPB's approach: “The CFPB’s overreach is well established and only intensified during the Biden administration. Instead of bringing more consumers into the banking system, this overdraft rule will push them away to unregulated lenders and I’m pleased to join my colleagues to block it.”

Chairman Scott echoed these sentiments, stating: “The Biden administration’s CFPB routinely targeted legitimate payment incentives and practices in pursuit of political headlines over sound policies. The overdraft rule was yet another example – many consumers rely on overdraft services to make ends meet and limiting this practice will push Americans to riskier financial products. I’m proud to lead the effort to overturn this misguided rule and protect Americans’ access to important financial services.”

Chairman Hill emphasized the need for oversight of the CFPB: “As I have consistently said, the CFPB needs guardrails on its enforcement and rulemaking powers, and this rule is another clear example of why. The CFPB’s actions on overdraft is another form of government price controls that hurt consumers who deserve financial protections and greater choice. Our CRA will help overturn this harmful rule and is a next step toward ensuring the CFPB halts all ongoing rules until it answers to Congress, just like any other non-independent federal agency.”

The resolution has garnered support from several senators including Mike Crapo, Roger Wicker, Jim Risch, Jerry Moran, Thom Tillis, Kevin Cramer, Cynthia Lummis, Bill Hagerty, Katie Britt, and Pete Ricketts.

Backing from industry groups such as the Consumer Bankers Association, Independent Community Bankers of America, American Bankers Association, and America's Credit Unions underscores its industry significance.

A CRA resolution allows Congress to repeal regulations imposed by the executive branch through an expedited process in the Senate. If passed by both chambers of Congress with a simple majority vote and signed by the president—or if Congress overrides a presidential veto—the regulation is nullified.