S.J.Res. 18 · 119th Congress · Senate
A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
Introduced 2025-02-13 · Sponsored by Sen. Scott, Tim [R-SC] (R-SC) · Last updated 2026-03-31
Last action (2025-05-09): Became Public Law No: 119-10.
Summary
Blocks a CFPB rule that would have capped overdraft fees at $5 at the largest banks. Right now, overdraft fees at big banks typically run $35 per transaction. The CFPB wanted to slash those fees, but banks warned they would just stop offering overdraft protection entirely, leaving customers with bounced payments and late penalties instead.
The Good
Preserves overdraft services that some consumers rely on
The CFPB rule would have capped overdraft fees at $5 at large banks. Banks argued that at $5 per transaction, the service would be unprofitable and they would simply eliminate overdraft coverage, leaving customers whose payments bounce with merchant fees, late penalties, and damaged credit.
Avoids unintended consequences of price caps
Price caps can cause services to disappear rather than become cheaper. Banks argued they would respond by tightening checking account eligibility, reducing access for the lower-income customers the rule was designed to protect.
The Bad
Keeps overdraft fees averaging $35 at large banks
Large financial institutions charge roughly $35 per overdraft transaction, generating billions in annual revenue. The CFPB found these fees far exceed the actual cost of covering short-term negative balances, making overdraft a profit center rather than a service.
Overdraft fees disproportionately affect low-income account holders
CFPB research shows that 9% of account holders pay 80% of all overdraft fees. These are predominantly lower-income customers living paycheck to paycheck. A single $35 fee can trigger a cascade of additional overdrafts, creating debt spirals from what started as a minor shortfall.
Vote Record
House, 2025-04-09
Passed Congress.gov — House Roll Call #96
House vote by state
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Senate, 2025-03-27
Passed Congress.gov — Senate Roll Call #153
Senate vote by state
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Senate, 2025-03-26
Passed Congress.gov — Senate Roll Call #152
Senate vote by state
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