WASHINGTON — President Donald Trump signed the Republican-led Congressional Review Act resolution overturning the Consumer Financial Protection Bureau rule that would have
The CFPB's rule would have
"The Biden administration's ill-conceived rule imposing new price controls on overdraft services provided by banks and credit unions harmed the very consumers the CFPB is supposed to protect," said Senate Banking Committee Chair Tim Scott, R-S.C., in a statement Friday. "The rule would have reduced access to credit and important financial services and resulted in more unbanked Americans."
Scott introduced the resolution to nullify the overdraft rule in the Senate.
The overdraft cap had been opposed by bankers, who applauded the final step in overturning it and other steps by the Trump administration to roll back many CFPB rules issued under former Director Rohit Chopra, many of which bankers believed overstepped the bureau's authority.
"It is our hope this important step marks the beginning of a broader effort to reset the CFPB and reform the agency into a credible, durable regulator that consumers deserve," said Consumer Bankers Association President and CEO Lindsey Johnson in a statement. "We stand ready to work with the Trump Administration to enact commonsense reforms to the CFPB, cut bureaucratic red tape, and unleash innovation that will benefit all Americans for decades to come."
House Financial Services Committee member Andy Barr, R-Ky., will introduce a Congressional Review Act resolution to nullify the Office of the Comptroller of the Currency's merger rule that went into effect in January.
Even community bankers whose institutions have less than $10 billion of assets — thus exempting them from the rule — opposed it.
"Community banks provide a wide range of products and services in a competitive marketplace that customers may select to address situations in which they've overdrawn their account, including overdraft programs, free ad hoc solutions, alerts about their account status, account transfers, and more," the Independent Community Bankers of America said in a statement. "The CFPB rule's restrictions would have a negative ripple effect on customers and businesses that rely on overdraft services."
At the same time, Trump signed a separate CRA resolution for the CFPB's
"Both rulemakings were rushed out the door in the darkness of night in the waning hours of the Biden-Harris Administration and are perfect examples of undemocratic and unjustified actions. Americans voted for consumer choice, not government overregulation. By overturning these two rulemakings, we are returning decision-making power where it belongs: with the American people," said House Financial Services Committee Chairman French Hill, R-Ark., in a statement. "The rule would have reduced access to credit and important financial services and resulted in more unbanked Americans."
The CFPB's rule likely would have captured payment giants like Apple, Google, PayPal and others, and while CFPB has said it has always had enforcement authority over large payments companies, the rule would have allowed the bureau to conduct proactive examinations to make sure that the companies are complying with the law.
Under the Trump administration, the CFPB has rolled back other oversight of large tech firms, including
