ICBA Applauds House Passage of Resolution to Overturn Flawed CFPB Overdraft Rule

Washington, D.C. (April 9, 2025) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on House passage of a Congressional Review Act resolution to overturn the Consumer Financial Protection Bureau’s final rule on overdraft services.

“ICBA and the nation’s community banks commend the House for passing this critical resolution to overturn the CFPB’s final rule on overdraft services after the Senate recently passed the measure.

“The CFPB overdraft rule would have harmful unintended consequences on the consumers and local communities that community banks serve by causing them to experience the harsh realities of rejected payments. Further, the CFPB’s rule exceeds the bureau’s statutory authority under the Truth in Lending Act and violates existing regulations that have determined overdrafts are not extensions of credit.

“Community banks provide a wide range of products and services in a competitive marketplace that customers may select to address situations in which they’ve overdrawn their account, including overdraft programs, free ad hoc solutions, alerts about their account status, account transfers, and more. The CFPB rule’s restrictions would have a negative ripple effect on customers and businesses that rely on overdraft services.

“ICBA and community bankers nationwide thank House Financial Services Committee Chairman French Hill and Senate Banking Committee Chairman Tim Scott for their leadership on this issue and urge President Trump to sign this important resolution into law to avoid unintended consequences on consumers and local communities.”

About ICBA

The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.