FEDERAL GOVERNMENT RELATIONS
CFPB issues final rule capping overdraft fees
The Consumer Financial Protection Bureau issued a final rule on overdraft services that will cap fees at banks and credit unions with more than $10 billion in assets. The CFPB said the rule – which is scheduled to take effect on Oct. 1, 2025 – will impose three options for covered banks to manage their overdraft lending programs:
- Cap their overdraft fee at $5.
- Charge a fee that covers no more than costs or losses.
- Extend overdraft services by treating them as extensions of credit and complying with federal lending laws, including disclosing any applicable interest rate.
Following the release of the final rule, several industry groups have filed a lawsuit challenging the legal basis of the rulemaking.
Hill named House Financial Services Committee chairman
Rep. French Hill, R-Ark., was voted the next chairman of the powerful House Financial Services Committee. Rep. Maxine Waters, D-Calif., was re-elected ranking member. Also in the running for the chairmanship were Reps. Andy Barr, R-Ky.; Bill Huizenga, R-Mich.; and Frank Lucas, R-Okla.
Hill has supported many pro-community bank regulatory relief measures over the years. A former banker, he is currently chair of the Subcommittee on Digital Assets, Financial Technology, and Inclusion and recently released his principles for improving banking detailing many industry-backed reforms.
ABA, ICBA, associations file lawsuit challenging CFPB cap on overdraft fees
The American Bankers Association and Independent Community Bankers of America joined associations representing bankers and credit unions in filing a lawsuit challenging the Consumer Financial Protection Bureau’s effective cap on overdraft fees.
CFPB seeks comment on use of credit reporting in domestic violence, elder abuse
The Consumer Financial Protection Bureau is seeking public input in advance of a proposed rule to extend the Fair Credit Reporting Act’s identity theft protections to certain negative information on the credit reports of victims of domestic violence, elder abuse or other forms of financial abuse.
Texas court denies CFPB request to transfer credit card late fee lawsuit to D.C.
A federal judge in Texas refused a Consumer Financial Protection Bureau request to lift a preliminary injunction blocking the bureau’s credit card late fee rule from taking effect and move the lawsuit seeking to overturn the rule to Washington, D.C.
Federal report outlines potential risks to US financial stability
The U.S. banking system remains resilient but there are pockets of potential vulnerability that need continued monitoring, such as in the areas of commercial real estate, third-party relationships and cybersecurity, the Financial Stability Oversight Council said.
CFPB’s Chopra says agency will move forward with rulemakings
Consumer Financial Protection Bureau Director Rohit Chopra said his agency will press forward with rulemakings even as federal banking agencies have paused their major initiatives until after President-elect Donald Trump takes office.