In Anti-Consumer Move, U.S. House Committee Votes to Reverse the Cap on Excessive Bank Overdraft Fees

For Immediate Release

March 5, 2025

In Anti-Consumer Move, U.S. House Committee Votes to Reverse the Cap on Excessive Bank Overdraft Fees

WASHINGTON, DC – The U.S. House Financial Services Committee today voted to overturn a regulation that would cap overdraft fees from average $35 to $5 at large financial institutions with over $10 billion in assets. The Committee passed H.J. Res. 59 in a 30-19 vote, using a law, the Congressional Review Act (CRA), which allows Congress to overturn rules using expedited procedures. The overdraft rule, issued by the Consumer Financial Protection Bureau, promises to save consumers up to $5 billion a year.

“The Committee gave up the chance to put money back into the pockets of American families, including those of military members and seniors,” said Christine Hines, senior policy director at National Association of Consumer Advocates. “It is a shame that members of Congress who should be looking out for the best interests of their constituents decided to overturn a reasonable policy that would have helped millions of people.”

Overdraft fee charges encourage deceptive and unfair bank practices. For example, banks have charged overdraft fees when the account had sufficient funds, manipulated the order of transactions, and engaged in other abuses.

“Excessive overdraft fees make banking unaffordable and threaten to push people out of the banking system,” Hines said.

The rule would have reined in these charges at the largest financial institutions, such as JP Morgan Chase and Wells Fargo, which in 2023, charged $1.1 billion and $937 million, respectively, in overdraft and non-sufficient funds fees. And it would have promoted straightforward, affordable forms of overdraft coverage protection.

If the resolution next passes the full House and Senate by simple majority, and is signed by the president, it will no longer exist as a consumer protection.

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