WASHINGTON––U.S. Senator John Boozman (R-AR), Senate Banking Committee Chairman Tim Scott (R-SC) and House Financial Services Committee Chairman French Hill (R-AR-04) introduced a Congressional Review Act (CRA) resolution to overturn the Biden administration’s Consumer Financial Protection Bureau’s (CFPB) final rule capping overdraft fees at banks and credit unions, citing the rule’s damaging impact on access to important financial services. 

“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,” said Boozman.

“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,” said Scott.

“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,” said Hill. 

The resolution is also supported by Senators Mike Crapo (R-ID), Roger Wicker (R-MS), Jim Risch (R-ID), Jerry Moran (R-KS), Thom Tillis (R-NC), Kevin Cramer (R-ND), Cynthia Lummis (R-WY), Bill Hagerty (R-TN), Katie Britt (R-AL) and Pete Ricketts (R-NE).

 The CRA has the support of key stakeholders including the Consumer Bankers Association, the Independent Community Bankers of America, the American Bankers Association and America's Credit Unions.

A CRA resolution is a tool used by Congress to eliminate onerous regulations imposed by the executive branch through an expedited procedure for consideration in the Senate. A joint resolution of disapproval under the CRA is afforded special privileges that bypass normal Senate rules and allow for a vote on the Senate floor. When a CRA resolution is approved by a simple majority in both chambers of Congress and signed by the president – or if Congress successfully overrides a presidential veto – the rule is invalidated.    

Click here for full text of the resolution