On May 9, President Donald Trump repealed two CFPB rules which were brought under the previous administration. The first action repealed the CFPB’s overdraft lending rule (S. J. Res. 18), which would have capped overdraft fees at $5 for banks and credit unions with at least $10 billion in assets or otherwise required such banks and credit unions to establish an “overdraft credit” according to the CFPB’s methodology (covered by InfoBytes here). The second action repealed the CFPB’s larger participant rule (S. J. Res. 28), which would have subjected non-bank digital payment providers processing at least 50 million transactions annually to CFPB supervision (covered by InfoBytes here). The House used the Congressional Review Act to eliminate these regulations.
The overdraft rule was part of a campaign against “junk fees,” and the digital payment rule targeted compliance with the EFTA and other federal consumer protection laws. Both rules were under scrutiny as several groups have brought legal challenges to prevent the rules from going into effect (see Orrick’s CFPB Rulemaking Tracker here).
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