Hill and Scott challenge CFPB overdraft fee cap with new resolutions

House Financial Services Committee Chairman French Hill and Senate Banking Committee Chairman Tim Scott have introduced Congressional Review Act resolutions aimed at overturning the Biden Administration's Consumer Financial Protection Bureau (CFPB) rule that caps overdraft fees at banks and credit unions. The leaders argue that the rule affects access to essential financial services and undermines lawful payment incentives.

The resolution from Chairman Hill is supported by several representatives, including Bill Huizenga, Ann Wagner, Andy Barr, Roger Williams, William Timmons, Ralph Norman, Dan Meuser, Byron Donalds, Andy Ogles, Maria Salazar, Troy Downing, Mike Haridopolos, Tim Moore, and Glenn Grothman. Senators Mike Crapo, Roger Wicker, Jim Risch, Jerry Moran, John Boozman, Thom Tillis, Kevin Cramer, Cynthia Lummis, Bill Hagerty, Katie Boyd Britt, and Pete Ricketts are co-sponsors of Chairman Scott's resolution.

Chairman Hill stated: "Senate Banking Committee Chairman Tim Scott and I were clear when we told federal agencies – including the CFPB - to stop all midnight rulemaking." He emphasized the need for guardrails on the CFPB's powers and described the rule as another form of government price control detrimental to consumers.

Chairman Scott added: “The Biden Administration’s CFPB routinely targeted legitimate payment incentives... limiting this practice will push Americans to riskier financial products.”

The CRA has garnered support from key stakeholders such as the Consumer Bankers Association (CBA), Independent Community Bankers of America (ICBA), American Bankers Association (ABA), and America's Credit Unions. Lindsey Johnson of CBA commended Hill and Scott for their efforts against what she termed a "blatant overreach." Rebeca Romero Rainey of ICBA criticized the CFPB's restrictions as harmful to customers relying on overdraft services. Rob Nichols of ABA highlighted that the rule reverses longstanding regulatory precedent.

In December 2024 statements preceding this action, both Chairmen had warned against finalizing partisan rules before President Trump took office. They criticized CFPB Director Rohit Chopra for proceeding with what they viewed as aggressive agenda-setting.