GOP Takes First Step Toward Repealing CFPB $5 Overdraft Fee Cap

Republican lawmakers are moving to repeal the Consumer Financial Protection Bureau’s $5 cap on bank overdraft fees, adopted in the final months of the Biden administration as part of its campaign against “junk fees.”

House Financial Services Committee Chairman French Hill (R-Ark.) and Senate Banking Committee Chairman Tim Scott (R-S.C.) introduced legislation to cancel the rule using the Congressional Review Act, the lawmakers announced Thursday.

“The Biden Administration’s CFPB routinely targeted legitimate payment incentives and practices in pursuit of political headlines over sound policies,” Scott said in a statement. “The overdraft rule was yet another example—many consumers rely on overdraft ...