SJRES 18
A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".
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Bill overview
This joint resolution aims to block a rule issued by the Consumer Financial Protection Bureau (CFPB) regarding overdraft lending practices at very large financial institutions. The CFPB rule established limits on overdraft fees, capping them at $5 or allowing higher fees with justification, and required these institutions to treat overdrafts as credit. This resolution seeks to overturn these provisions, effectively preventing the CFPB rule from taking effect.
Key provisions
- Caps overdraft fees at $5 per transaction.
- Allows very large financial institutions to justify higher overdraft fees.
- Requires overdrafts to be treated as credit.
- Mandates Truth in Lending Act disclosure requirements for overdrafts.
Who is affected
- Very large financial institutions
- Consumers who utilize overdraft services
Notable changes
- Undermines the CFPB’s efforts to regulate overdraft fees.
- Reinstates potentially higher overdraft fees than those proposed by the CFPB.
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119th CONGRESS — 1st Session
S. J. RES. 18
IN THE SENATE OF THE UNITED STATES
JOINT RESOLUTION
Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to Overdraft Lending: Very Large Financial Institutions
.
Overdraft Lending: Very Large Financial Institutions(89 Fed. Reg. 106768 (December 30, 2024)), and such rule shall have no force or effect.