Overview

• The U.S. House of Representatives voted 217-211 to repeal the CFPB's rule capping overdraft fees at $5, following the Senate's narrow approval in March.
• The resolution now heads to President Donald Trump, who is expected to sign it into law, finalizing the repeal of the regulation set to take effect in October 2025.
• Proponents of the repeal argue that the fee cap could lead to reduced access to overdraft protection and potentially push consumers toward riskier, unregulated lenders.
• Consumer advocates and state attorneys general, including New York AG Letitia James, have opposed the repeal, emphasizing the rule's potential to save households $225 annually and protect vulnerable consumers.
• Bank overdraft fees currently generate $8 billion annually for financial institutions, with critics describing them as exploitative charges disproportionately affecting low-income customers.