On April 9, the House of Representatives passed two resolutions that it received from the Senate, overturning two CFPB rules from the Biden administration. The House considered S.J. Res. 18, disapproving the CFPB’s final rule on “Overdraft Lending: Very Large Financial Institutions” (the Overdraft Rule), finalized in December 2024, which aimed to restrict the overdraft fees charged by large financial institutions (as covered by InfoBytes here). Previously, the House had introduced H.J. Res. 59, also seeking to disapprove the Overdraft Rule and, on April 8, attorneys general for 22 states and the District of Columbia, and the Executive Director of Hawaii’s Office of Consumer Protection, sent a letter to House leadership urging them to oppose the resolution.
The House also considered S.J. Res. 28, which disapproves the CFPB’s final rule on “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications” (Digital Payments Rule), finalized in November 2024, which would have extended CFPB supervision to nonbank financial services companies processing over 50 million transactions (covered here).
Congress passed both resolutions under the Congressional Review Act, which allows Congress to review and potentially overturn federal regulations within a specified timeframe. Before considering the resolutions, the House first adopted H. Res. 294, which set the terms for considering them. Having passed both chambers of Congress, the resolutions now await the president’s signature to take effect.
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