U.S. senators are on their way to approve of big banks burdening constituents with excessive overdraft fees. The Consumer Financial Protection Bureau recently issued a rule to limit overdraft fees charged by the largest banks to $5. But in a late-night move yesterday, the Senate voted to advance a Congressional Review Act resolution that would nullify the regulation. The Senate will next vote on the CRA resolution itself. In the House, the Financial Services Committee voted to overturn the overdraft rule, and the next step there is a full floor vote.
Other recent CFPB rules remain vulnerable to Congress’ whims. CRA resolutions weaving their way through Congress seek to eliminate 1) a rule allowing the CFPB to supervise large providers of digital wallets and payment apps, such as PayPal, Venmo, CashApp, and Apple Wallet (CRA passed the Senate); and 2) a rule that would remove medical bills from credit reports and prevent consumer reporting companies from sharing medical debt information with lenders.
Here’s a comprehensive rundown of Congressional Review Act resolutions across the regulatory landscape.
