ICBA supports resolutions to scrap CFPB overdraft rule

ICBA expressed support for a new congressional effort to invalidate the Consumer Financial Protection Bureau’s final rule on overdraft protection programs, saying it is a deeply flawed and harmful rule.

ICBA-Backed Resolutions: Senate Banking Committee Chairman Tim Scott (R-S.C.) and House Financial Services Committee Chairman French Hill (R-Ark.) last week introduced ICBA-supported Congressional Review Act resolutions (S.J.Res. 18 and H.J.Res. 59) to overturn the overdraft rule. ICBA is pressing Congress to pass S.J.Res. 18 and H.J.Res. 59 to invalidate the CFPB’s rule set to cap overdraft fees at banks and credit unions with more than $10 billion in assets.

Letters to Lawmakers: In letters to Scott and Hill, ICBA and other groups said:

• Overdraft protection services provide a needed form of short-term liquidity for millions of consumers.

• Overdraft fees are not “junk fees,” as the CFPB claimed.

• The rule goes well beyond the CFPB's statutory authority and reverses 55 years of consistent interpretation of the Truth in Lending Act and Regulation Z.

More: In a news release issued last week by the lawmakers, ICBA President and CEO Rebeca Romero Rainey expressed ICBA’s support for the resolutions, noting the CFPB’s overdraft rule exceeded the bureau’s statutory authority and violated existing regulations.