House passes resolution to kill CFPB overdrafts rule

Yesterday, the House of Representatives passed a joint resolution to overturn the Consumer Financial Protection Bureau’s "Overdraft Lending: Very Large Financial Institutions" rule. The CFPB overdraft limit requires banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act.

The House also passed a joint resolution disapproving the rule submitted by the CFPB relating to "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications."

The two joint resolutions now go to the president, who can approve or veto them. If he approves the resolutions, the CFPB rules will be nullified, and no substantially similar rules can be issued.