ICBA urging community banker outreach on stopping CFPB overdraft rule

ICBA is calling on community bankers to tell their members of Congress to stop the Consumer Financial Protection Bureau's overdraft rule.

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

ICBA Support: In recent letters of support 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.

Advocacy: Community bankers can use ICBA’s Be Heard Grassroots Action Center to urge their members of Congress to support the resolutions.