House Passes Two CRA Resolutions Rolling Back CFPB’s Overdraft and Digital Payment Rules | Troutman Pepper Locke

On April 9, the House of Representatives passed two Congressional Review Act (CRA) joint resolutions aimed at nullifying certain Consumer Financial Protection Bureau (CFPB) rules finalized in the final days of the Biden-Harris Administration. These resolutions, S.J. Res. 18 and S.J. Res. 28, target rules related to limiting the overdraft fees that may be charged by large financial institutions, and extending supervisory authority over certain providers of digital payments services, respectively. The CRA resolutions are now before President Trump for signature.

Overdraft Fees Rule

S.J. Res. 18 disapproves the CFPB’s rule on overdraft fees, which was finalized on December 12, 2024 (discussed here). The rule, which was set to take effect on October 1, 2025, aims to provide consumer protections similar to those for credit cards, in the context of charging overdraft fees. It requires large financial institutions to either cap their overdraft fees at $5 or base them on actual costs. The rule also includes significant disclosure requirements and amendments to Regulations Z and E.

The Senate passed S.J. Res. 18 late last month by a vote of 52-48, and this week it passed the House by a vote of 217 to 211. In the press release announcing the CRA’s passage, Chairman of the House Committee on Financial Services French Hill (R-AR) emphasized that the “government price control on overdraft fees would have limited consumer choice and been detrimental to families who need the certainty that their purchases will not be denied at the cash register.”

Digital Payments Rule

S.J. Res. 28 disapproves the CFPB’s rule expanding its supervisory authority into the digital payments ecosystem, which was finalized on November 21, 2024 (discussed here). This rule targeted nonbank companies facilitating over 50 million consumer payment transactions annually, subjecting them to the CFPB’s supervisory authority. The rule imposed requirements on personal financial data rights and Regulation E protocols for disputing incorrect or fraudulent transactions, and addressed issues related to unfair, deceptive, or abusive acts or practices.

The Senate passed S.J. Res. 28 early last month by a vote of 51-47, and this week it passed the House by a vote of 219 to 211. In the press release, Representative Mike Flood (R-NE) described the rule as “a regulatory power grab by the CFPB’s outgoing Biden nominee, Mr. Chopra”, while Representative Tim Moore (R-NC) called it “a textbook case of regulatory overreach … [applying] an overly broad approach that blurs important distinctions between very different products and services in the digital economy.”

Implications

The passage of these CRA joint resolutions marks a significant step in the continuing efforts of the current Administration to roll back regulations enacted in the final days of the Biden-Harris Administration. The CRA process allows Congress to reject recent federal regulations within 60 legislative days by a simple majority vote in both chambers. If signed by the President, these rules would be rescinded, and the CFPB would be prohibited from issuing substantially similar rules without explicit legislative authorization.