**Senate Blocks Banking Rule to Prevent Higher Overdraft Fees**

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senate

23 days ago - Politics

Senate Votes to Block New Banking Rule on Overdraft Fees, Protects Consumers

In a significant decision, the Senate voted to block a new rule that would have allowed large banks to charge higher fees when customers accidentally spend more money than they have in their accounts. This vote happened with a majority of Republican senators supporting the move.

The resolution passed with a close vote of 52 to 47. This means that more than half of the senators agreed to stop the rule from going into effect, which was set to take place in December 2024. By blocking this rule, the Senate is taking a stand for consumers, helping to protect them from unexpected and costly fees that can happen when they unintentionally overdraw their bank accounts.

This new rule was proposed by the Bureau of Consumer Financial Protection, a group that is supposed to help keep banking practices fair. Under the rule, banks would be able to charge higher overdraft fees, which can be a burden on people who might already be struggling financially. With this ruling blocked, consumers will not have to worry about paying these extra costs when they accidentally spend more than they have.

This outcome is important because it offers some relief to people who might find themselves in tough financial spots. By preventing these high fees, many families can keep more money in their pockets during challenging times, making it easier for them to manage their budgets without the added stress of potential banking fees. Overall, this vote is a win for everyday people and their financial well-being.

This is a decision made by Congress to stop a rule from the Bureau of Consumer Financial Protection about overdraft lending at big banks.

  1. Main Point: Congress disapproves a specific rule that affects how large financial institutions charge overdraft fees.

  2. Details:

    • The rule in question was meant to guide how big banks manage overdraft lending.
    • It was published on December 30, 2024.
    • With this decision, the rule will not go into effect, meaning it will not apply to these financial institutions.

This change affects how much extra money banks can charge customers who spend more than they have in their accounts.

99 votes

Yes

52

No

47

Not Voting

1

  1. Rules Committee Resolution H. Res. 294 Reported to House. Rule provides for consideration of S.J. Res. 18, S.J. Res. 28, H.R. 1526 and H.R. 22. The resolution provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18, and S.J. Res. 28 under a closed rule. The resolution provides for one hour of debate on each measure and one motion to recommit on H.R. 22 and H.R. 1526, and one motion to commit on S.J. Res. 18 and S.J. Res. 28.
  2. Rules Committee Resolution H. Res. 282 Reported to House. Rule provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18 and S.J. Res. 28. The resolution provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18, and S.J. Res. 28 under a closed rule. The resolution provides for one hour of debate on each measure and one motion to recommit on H.R. 22 and H.R. 1526, and one motion to commit on S.J. Res. 18 and S.J. Res. 28. The resolution also provides that H. Res. 23 and H. Res. 164 are laid on the table.
  3. Held at the desk.
  4. Received in the House.
  5. Message on Senate action sent to the House.
  6. Passed Senate without amendment by Yea-Nay Vote. 52 - 48. Record Vote Number: 153. (text: CR S1884)
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  7. Engrossed in Senate

    This is a resolution that stops a new rule about overdraft lending from big banks.

    Key points:

    • Congress does not approve the rule about how large financial institutions can manage overdraft lending.
    • This rule was meant to control how banks charge fees when people spend more money than they have in their accounts.
    • By disapproving this rule, it means banks can continue operating under the old rules without new limits.
    • This decision was made on March 27, 2025.

    Impact:

    • People might continue to pay high fees if they overdraft their accounts because the new protections won’t be in place.
    • This affects how banks can charge customers for overdrafts.
  8. Passed/agreed to in Senate: Passed Senate without amendment by Yea-Nay Vote. 52 - 48. Record Vote Number: 153.
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  9. Considered by Senate. (consideration: CR S1879, S1884)
  10. Placed on Calendar Senate

    This is a statement from Congress that stops a new rule about overdraft lending by big banks.

    1. Congress decided that the rule created by the Bureau of Consumer Financial Protection is not going to be used anymore.
    2. This rule was about how large banks handle overdraft lending, which is when you spend more money than you have in your account and get charged a fee.
    3. By disapproving this rule, Congress is saying that these banks will not have to follow it, meaning they might continue to charge fees without new limits.

    This decision affects people because it can change how much money in fees they pay if they spend more than what's in their bank account.

  11. Measure laid before Senate by motion. (consideration: CR S1864)
  12. Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 52 - 47. Record Vote Number: 152.
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  13. Placed on Senate Legislative Calendar under General Orders. Calendar No. 34.
  14. Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
  15. Introduced in Senate

    This is a decision made by Congress to stop a rule from the Bureau of Consumer Financial Protection about overdraft lending at big banks.

    1. Main Point: Congress disapproves a specific rule that affects how large financial institutions charge overdraft fees.

    2. Details:

      • The rule in question was meant to guide how big banks manage overdraft lending.
      • It was published on December 30, 2024.
      • With this decision, the rule will not go into effect, meaning it will not apply to these financial institutions.

    This change affects how much extra money banks can charge customers who spend more than they have in their accounts.

  16. Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  17. Introduced in Senate