Bill Summary
The Joint Resolution disapproves a rule established by the Bureau of Consumer Financial Protection concerning overdraft lending practices at very large financial institutions. This resolution indicates that Congress does not support the rule, which was published in the Federal Register on December 30, 2024. By passing this resolution, Congress nullifies the rule, meaning it will not take effect or be enforced. This action reflects Congress's authority to review and reject regulations proposed by federal agencies.
Possible Impacts
The Joint Resolution disapproving the rule related to "Overdraft Lending: Very Large Financial Institutions" could affect people in the following ways:
1. **Increased Overdraft Fees**: Without the regulation in place, large financial institutions may continue or increase their overdraft fees. This can lead to higher costs for consumers who accidentally overdraw their accounts, disproportionately impacting low-income individuals who may rely on overdraft services to manage their cash flow.
2. **Limited Consumer Protections**: The disapproval of this rule may result in fewer consumer protections regarding overdraft lending practices. Consumers could face more aggressive collection practices or lack clear disclosures about the terms and costs associated with overdraft services, making it harder for them to make informed financial decisions.
3. **Potential for Increased Debt Cycles**: The absence of the regulation may lead to consumers becoming trapped in cycles of debt due to repeated overdrafts and associated fees. This can exacerbate financial instability for individuals and families, affecting their overall financial health and ability to save or invest for the future.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S.J. Res. 18 Enrolled Bill (ENR)]
S.J.Res.18
One Hundred Nineteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty five
Joint Resolution
Disapproving the rule submitted by the Bureau of Consumer Financial
Protection relating to ``Overdraft Lending: Very Large Financial
Institutions''.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That Congress disapproves the
final rule submitted by the Bureau of Consumer Financial Protection
relating to ``Overdraft Lending: Very Large Financial Institutions''
(89 Fed. Reg. 106768 (December 30, 2024)), and such rule shall have no
force or effect.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.