ABA Applauds Senate Disapproval of CFPB’s Overdraft Rule

“We applaud today’s Senate passage of the Congressional Review Act resolution nullifying the CFPB’s unlawful overdraft rule and thank Senate Banking Committee Chairman Tim Scott for his leadership on this important issue.

“Without access to overdraft protection, many Americans would be driven to less regulated and higher risk non-bank lenders to cover unexpected or emergency expenses. If implemented, the CFPB’s eleventh-hour rule imposing government price controls would force many banks to limit or eliminate overdraft protection as we know it. In adopting the rule, the Bureau ignored the majority of Americans who have consistently said they value the service and think it’s reasonable for banks to charge a fee for overdrafts.

“We now urge the House to quickly pass the companion resolution introduced by House Financial Services Committee Chairman French Hill so consumers can continue to rely on overdraft protection to meet their short-term financial needs.”