ABA, 52 State Bankers Associations Urge Congress to Repeal CFPB’s Illegal Overdraft Rule

Dear Speaker Johnson, Leader Jeffries, Leader Thune, and Leader Schumer,

The American Bankers Association and the undersigned 52 state bankers associations collectively represent banks of all asset sizes that serve customers from across the United States. We write to express strong support for S.J. Res. 18/H.J. Res. 59, the resolution of disapproval introduced by Chairman Tim Scott and Chairman French Hill, which would invalidate the final rule issued by the Consumer Financial Protection Bureau (CFPB) on December 12, 2024, regarding overdraft protection services. We urge Congress to pass this resolution without delay.

Overdraft protection services provide a needed form of short-term liquidity for millions of consumers who – following receipt of a consumer-tested disclosure – “opt-in” to use the product to cover emergency or unexpected expenses that overdraw their accounts. In the final days of his tenure, CFPB Director Rohit Chopra issued a final rule that goes well beyond the agency’s statutory authority. It declares overdraft services offered by banks and credit unions with more than $10 billion in assets to be "credit" regulated by the Truth in Lending Act (TILA) and Regulation Z unless the overdraft fee is below a $5 price cap or below the institution's "breakeven" costs to operate its overdraft program.

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