ICBA Applauds Signing of Resolution to Overturn Flawed CFPB Overdraft Rule

Washington, D.C. (May 10, 2025) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on President Donald Trump’s signing 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 President Trump and Congress for enacting this critical resolution to overturn the CFPB’s final rule on overdraft services and preclude the agency from issuing a substantially similar rule in the future.

“The CFPB overdraft rule would have had 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 exceeded the bureau’s statutory authority under the Truth in Lending Act and violated 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 had a negative ripple effect on customers and businesses that rely on overdraft services.

“ICBA and community bankers nationwide thank President Trump, Senate Banking Committee Chairman Tim Scott, and House Financial Services Committee Chairman French Hill for their leadership on this critical issue 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.