Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
- Bill Number
- H.J.Res. 59
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-03-21: Placed on the Union Calendar, Calendar No. 16.
- Last Updated
- 2026-02-25T09:06:18Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 59) aims to block a new regulation issued by the Bureau of Consumer Financial Protection (CFPB), an independent federal agency that oversees consumer financial products and services. Specifically, it disapproves a rule titled "Overdraft Lending: Very Large Financial Institutions," which was published in the Federal Register on December 30, 2024. The goal is to prevent this rule from taking effect, using a process known as the Congressional Review Act (CRA), which allows Congress to overturn certain agency regulations.
Key Provisions
- Disapproval Clause: The resolution explicitly states that Congress disapproves the CFPB's final rule on overdraft lending for very large financial institutions.
- Nullification: The rule is declared to have no legal force or effect, meaning it cannot be implemented or enforced.
- Sponsors and Timeline: Introduced on February 13, 2025, by Representative Hill of Arkansas and co-sponsors from the House Financial Services Committee. Additional sponsors were added on March 21, 2025. It was reported out of committee and committed to the full House for consideration on the same date.
Significant Changes to Existing Law
- This resolution does not create new laws but invokes the CRA to repeal an existing agency rule before it can shape financial practices. Without this action, the CFPB rule would have added regulatory requirements on how very large banks (typically those with over $10 billion in assets) handle overdraft fees and lending—fees charged when customers overdraw their accounts.
- It reverses the CFPB's attempt to treat certain overdraft practices as credit products under the Truth in Lending Act (TILA), a 1968 law requiring clear disclosure of credit costs. The rule sought to impose stricter disclosure, underwriting, and fee limits, but this disapproval halts those changes entirely.
Potential Impacts
- On Government Agencies: The CFPB's authority to regulate overdraft lending for large banks is curtailed, potentially limiting its ability to address consumer complaints about high fees (which can exceed $30 per transaction). This could encourage more congressional oversight of agency rulemaking.
- On Citizens: Consumers, especially those reliant on checking accounts, may continue facing unpredictable overdraft fees without the rule's proposed protections, such as clearer fee disclosures or limits on repeated charges. Low-income households, who are disproportionately affected by such fees, could see ongoing financial strain.
- On International Relations: No direct impact, as this is a domestic financial regulation focused on U.S. banks.
- Broader Economy: Large banks avoid new compliance costs, potentially stabilizing their operations but possibly slowing efforts to reduce "junk fees" in banking.
Main Stakeholders Affected
- Financial Institutions: Very large banks (e.g., JPMorgan Chase, Bank of America) benefit by avoiding new restrictions on overdraft programs, which generate billions in annual revenue.
- Consumers and Advocacy Groups: Everyday bank users and organizations like the Consumer Federation of America may oppose the disapproval, as it blocks fee reductions and transparency.
- CFPB and Regulators: The agency faces a setback in its mission to protect consumers from unfair practices, potentially influencing future rulemaking caution.
- Congress and Lawmakers: House Republicans sponsoring this resolution assert greater control over executive branch regulations, appealing to pro-business constituencies.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on the CRA (enacted in 1996), which gives Congress a 60-day window to review and veto rules via a simple majority vote (no presidential signature needed if passed by both chambers). If enacted, this creates a precedent for quick reversal of consumer protection rules without court challenges.
- Constitutional: Reinforces the separation of powers by allowing the legislative branch to check executive agencies, aligning with Article I's grant of lawmaking authority to Congress. However, it could spark debates on whether such disapprovals undermine agency expertise in interpreting laws like TILA.
- Political: Highlights partisan divides on regulation—sponsors (mostly Republicans) frame it as curbing "overreach" by the CFPB, while Democrats and consumer advocates might view it as favoring big banks over public interest. Passage could signal a broader pushback against Biden-era financial rules in the 119th Congress.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (17)
Rep. Meuser, Daniel [R-PA-9], Rep. Ogles, Andrew [R-TN-5], Rep. Wagner, Ann [R-MO-2], Rep. Huizenga, Bill [R-MI-4], Rep. Timmons, William R. [R-SC-4], Rep. Moore, Tim [R-NC-14], Rep. Haridopolos, Mike [R-FL-8], Rep. Barr, Andy [R-KY-6], Rep. Williams, Roger [R-TX-25], Rep. Donalds, Byron [R-FL-19], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Downing, Troy [R-MT-2], Rep. Norman, Ralph [R-SC-5], Rep. Grothman, Glenn [R-WI-6], Rep. Ezell, Mike [R-MS-4], Rep. Loudermilk, Barry [R-GA-11], Rep. Johnson, Dusty [R-SD-At Large]
Recent Actions
- 2025-03-21: Placed on the Union Calendar, Calendar No. 16.
- 2025-03-21: Reported by the Committee on Financial Services. H. Rept. 119-26.
- 2025-03-21: Reported by the Committee on Financial Services. H. Rept. 119-26.
- 2025-03-05: Ordered to be Reported by the Yeas and Nays: 30 - 19.
- 2025-03-05: Committee Consideration and Mark-up Session Held
- 2025-02-13: Referred to the House Committee on Financial Services.
- 2025-02-13: Introduced in House
- 2025-02-13: Introduced in House
Bill Versions
- Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions". — issued 2025-02-13 — PDF (1 pages)
- Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions". — issued 2025-03-21 — PDF (4 pages)