BGOV Bill Analysis: S. J. Res. 18, Repeal Overdraft Fee Rule (1)

A Biden administration rule capping overdraft fees large banks can charge would be repealed using the Congressional Review Act under S. J. Res. 18.

The Consumer Financial Protection Bureau rule, finalized Dec. 30 and effective Oct. 1, restricts how financial institutions with more than $10 billion in assets can impose overdraft charges, which trigger when a customer’s account doesn’t have enough money to cover a transaction.

Under the rule, banks can choose to either:

• Cap overdraft fees at $5.
• Cap fees at an amount that covers their costs and losses.
• Offer overdraft loans if they disclose terms such ...