Bill Summary
The legislation is a joint resolution that expresses Congress's disapproval of a rule submitted by the Bureau of Consumer Financial Protection (CFPB) regarding the withdrawal of a previous rule on "Improper Overdraft Opt-In Practices." This rule, identified as Consumer Financial Protection Circular 2024-05, was initially published in the Federal Register. By passing this resolution, Congress effectively nullifies the CFPB's decision to withdraw the rule, ensuring that the protections related to overdraft opt-in practices remain in effect. The resolution follows the procedures outlined in chapter 8 of title 5 of the United States Code, which governs congressional disapproval of certain agency rules.
Possible Impacts
The legislation concerning the disapproval of the Bureau of Consumer Financial Protection's withdrawal of certain rules related to overdraft practices could affect people in the following ways:
1. **Consumer Protection**: By maintaining the original rule on "Improper Overdraft Opt-In Practices," consumers may benefit from enhanced protections against excessive overdraft fees. This could prevent individuals from incurring unexpected charges, which can lead to financial strain, especially for low-income customers who may rely on bank accounts for their day-to-day transactions.
2. **Financial Institution Compliance**: Banks and credit unions will need to comply with the reinstated regulations, which may require them to alter their overdraft policies and practices. This could lead to changes in how these institutions communicate with their customers regarding opt-in practices for overdrafts, potentially increasing transparency and consumer understanding of their options.
3. **Market Competition**: The legislative decision could influence the competitive landscape among financial institutions. Banks that provide more consumer-friendly overdraft options may gain a competitive advantage over those that do not. This could encourage innovation in banking practices aimed at reducing fees and improving customer service, ultimately benefitting consumers through more favorable banking terms and conditions.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S.J. Res. 130 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. J. RES. 130
Providing for congressional disapproval under chapter 8 of title 5,
United States Code, of the rule submitted by the Bureau of Consumer
Financial Protection relating to the withdrawal of the rule relating to
``Consumer Financial Protection Circular 2024-05: Improper Overdraft
Opt-In Practices''.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 18, 2026
Mr. Van Hollen introduced the following joint resolution; which was
read twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
JOINT RESOLUTION
Providing for congressional disapproval under chapter 8 of title 5,
United States Code, of the rule submitted by the Bureau of Consumer
Financial Protection relating to the withdrawal of the rule relating to
``Consumer Financial Protection Circular 2024-05: Improper Overdraft
Opt-In Practices''.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That Congress disapproves the
rule submitted by the Bureau of Consumer Financial Protection relating
to the withdrawal of the rule relating to ``Consumer Financial
Protection Circular 2024-05: Improper Overdraft Opt-In Practices (89
Fed. Reg. 80075 (October 2, 2024))'' (90 Fed. Reg. 20084 (May 12,
2025)), and such rule shall have no force or effect.
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