**Congress Votes to Block Overdraft Fee Consumer Protection Rules**

Chamber
senate

22 days ago - Politics

Congress Blocks Consumer Protection Rule on Overdraft Fees for Big Banks

In a recent vote, the Senate passed a measure that blocks new rules designed to protect consumers from high overdraft fees charged by large banks. The resolution, known as S.J. Res. 18, received approval with a narrow vote of 52 to 48.

The main supporters of this decision were Senate Republicans, who argued that the earlier rules were not helpful enough. By passing this resolution, Congress decided to give banks more freedom in how they charge customers when their accounts go into the negative—meaning when people spend more money than they have.

Without these rules in place, banks can impose larger fees on customers who accidentally spend more than what is in their account. This can be especially tough for people who are already having a hard time managing their money. Higher overdraft fees can create a cycle of debt, meaning customers may end up paying back the bank a lot more than they borrowed just because they needed temporary access to their own funds.

The vote means that many Americans will have less protection when it comes to overdraft lending practices. With fewer rules, there is also less oversight on how banks handle these situations. This could lead to more financial strain for families and individuals who rely on their banking services for daily expenses.

In summary, the Senate has decided to remove rules that were meant to control overdraft fees, and this change could result in higher costs for consumers. People may find themselves facing unexpected financial challenges as a result of this decision.

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.

100 votes

Yes

52

No

48

Not Voting

0

-
  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