Article Summary –
Essential Facts and Data
Senate Republicans voted on March 27 to repeal a Consumer Financial Protection Bureau (CFPB) rule that capped most bank overdraft fees at $5, a regulation that was implemented in December 2024 to save Americans billions of dollars annually. The CFPB estimated that the rule would have saved each household up to $225 per year. All Senate Republicans supported the repeal except Sen. Josh Hawley, with the House of Representatives, controlled by Republicans, now deciding the fate of the rule.
Arguments Presented
The repeal is criticized as benefiting bank executives while harming ordinary people who struggle with high costs of living, as expressed by Lauren Saunders from the National Consumer Law Center. This move marks the second time Senate Republicans have rolled back CFPB regulations within a month, following the repeal of a rule for electronic payment apps to follow the same regulations as large banks. Sen. Thom Tillis, a swing-state Republican up for reelection in 2026, co-sponsored the repeal effort, yet his spokesperson did not provide a comment on the matter.
Senate Republicans voted on March 27 to repeal a Consumer Financial Protection Bureau (CFPB) rule capping most bank overdraft fees at $5.
Overdraft fees are charged by banks and credit unions when customers spend more than their account balance. These fees can accrue interest, pushing financially struggling individuals deeper into debt and poverty.
The rule, instated in December 2024, was expected to save Americans billions annually. The CFPB estimated savings of $225 per household each year.
All Republicans backed the repeal except Missouri Sen. Josh Hawley.
This marks the second CFPB regulation rollback by Republicans this month. On March 5, they repealed a rule requiring electronic payment apps like Zelle and Venmo to adhere to large bank rules. This aimed to bolster fraud protections and prevent political belief-based service denials.
The future of these rules now lies with the Republican-majority House of Representatives.
The repeal was co-sponsored by 12, including North Carolina Sen. Thom Tillis, a swing-state Republican facing reelection in 2026.
“It is shameful that Republicans are effectively writing bonus checks to executives at the nation’s largest banks while ordinary people struggle with high prices and increased costs of living,” said Lauren Saunders, associate director of the National Consumer Law Center.
A Tillis spokesperson did not respond to a request for comment.
The post Senate Republicans vote to eliminate cap on overdraft fees appeared first on American Journal News.
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