Republicans Want to Slash Protections Against Big Banks’ Overdraft Fees
WASHINGTON, DC (APRIL 9, 2025) — In response to House Republicans voting to repeal the CFPB’s overdraft fee cap rule, DNC Rapid Response Director Alex Floyd released a statement:
“As Donald Trump moves to shutter an agency that has put nearly $20 billion back in Americans’ pockets, Republicans just voted to let big banks go back to scamming consumers out of their hard-earned dollars. The CFPB helps shield consumers from being buried in unnecessary fees, but Trump and his MAGA lackeys are happily rolling back these protections to line Wall Street’s pockets. While working families brace for a recession under Trump’s failing economy, Republicans are showing where their priorities lie: helping the ultra-rich get richer while the rest of us pay the price.”
NEW: House Republicans voted to rip away a Consumer Financial Protection Bureau rule that caps bank overdraft fees at $5, stripping Americans of “billions of dollars per year.”
Bloomberg: “The Consumer Financial Protection Bureau’s $5 cap on overdraft fees, adopted in the waning days of the Biden administration, is poised for repeal after a House vote.
“The House voted 217-211 on Wednesday to clear a measure (S. J. Res. 18) that rescinds the CFPB’s rule under the Congressional Review Act. The House vote comes after the US Senate voted on March 27 to repeal the rule, and the resolution will head to President Donald Trump’s desk for signature.”
New York Times: “Lawmakers voted to invalidate a rule adopted last year by the Consumer Financial Protection Bureau … that had been expected to save Americans billions of dollars per year.”
Donald Trump and his corrupt billionaire Cabinet have already moved to shutter the Consumer Financial Protection Bureau, an extremely popular agency that has successfully returned $19.7 billion to working families.
CNN: “Consumer watchdog ordered to stop fighting financial abuse and to work from home as HQ temporarily shuts down”
“Vought had sent an email Saturday night ordering all employees at the consumer watchdog to stop virtually all work — including fighting financial abuse.
“‘Effective immediately, unless expressly approved by the Acting Director or required by law, all employees, contractors and other personnel of the bureau shall…cease all supervision and examination activity,’ Vought wrote in the email, a copy of which was viewed by CNN.”
Lake Research Partners: “[N]early 4 in 5 say they favor the agency (79%).
“Voters are overwhelmingly supportive across party lines. Two-thirds of independents (64%), three quarters of Republicans (75%), and over eight in ten Democrats (86%) support the CFPB. Intensity among Democrats is particularly high – a majority strongly favor the agency (51%).”
Consumer Financial Protection Bureau: “As of January 30, 2025, CFPB enforcement actions have resulted in:
“$19.7 billion in consumer relief … 195 million people eligible for relief … [and] $5 billion in civil money penalties”
USA Today: “Thousands of complaints submitted by Americans to the Consumer Financial Protection Bureau alleging fraud or scams from private companies are going unanswered following President Donald Trump’s efforts to dismantle the agency, Senate Democrats argue in a new report. …
“The daily average of complaints submitted to companies has dropped to 2,067 since Feb. 13, a decline of 80% from the pre-Trump rate.”
The CFPB has a long, successful track record of holding banks and corporations accountable for fraud, scams, and discrimination while putting money back in the pockets of working families, veterans, and students.
Consumer Financial Protection Bureau: “[T]he Consumer Financial Protection Bureau (CFPB) [ordered] Regions Bank to pay $50 million into the CFPB’s victims relief fund and to refund at least $141 million to customers harmed by its illegal surprise overdraft fees.”
Politico: “Wells Fargo Slammed With $3.7B Penalty, In Record CFPB Settlement”
Washington Post: “Bank of America agreed Wednesday to pay nearly $800 million in penalties for deceiving millions of customers into buying costly and unneeded services when they signed up for credit cards.”
Consumer Financial Protection Bureau: “CFPB Announces Return of $1.8 Billion in Illegal Junk Fees to 4.3 Million Americans Harmed in Massive Credit Repair Scheme”
Military Times: “Troops will get part of a $5M settlement in alleged title loan scam”
https://democrats.org/news/republicans-want-to-slash-protections-against-big-banks-overdraft-fees/