House votes to block CFPB’s $5 cap on big bank overdraft fees and oversight of big tech payment apps, building on tariff woes and high grocery costs for families struggling to keep food on the table
WASHINGTON – The House of Representatives voted today to allow big banks to collect excessive junk fees from struggling consumers, approving a resolution to overturn the Consumer Financial Protection Bureau’s (CFPB) big bank overdraft fee rule, which reduces most overdraft fees from $35 to $5. The resolution passed the House on a largely party-line vote, 217-211, with nearly all House Republicans on the side of big banks – Rep. Ryan Mackenzie (R-PA-7) voted with the Democrats in opposition. The resolution passed the Senate last month with Sen. Josh Hawley (R-MO) as the lone Republican voting to throw a lifeline to consumers. The bill now heads to President Trump for his signature.
“Republicans in Congress had a chance to put $5 billion back in the pockets of working people, including servicemembers, by dramatically cutting big bank overdraft fees. Instead, they sided with Wells Fargo, Chase, and Navy Federal Credit Union, allowing them to use abusive overdraft fees to pad their profit margins,” said Lauren Saunders, associate director of the National Consumer Law Center. “With tariffs and a looming recession threatening to push prices higher and squeeze wages, voters need the relief they were promised on the campaign trail, not a Congress that works for banks and their shareholders.”
An NCLC issue brief shows that, among the 10 largest banks, Chase and Wells Fargo have the most to gain from the House’s decision to overturn the rule. Both banks raked in $1 billion in overdraft fees last year, far more than any other bank. The next big winner is Navy Federal Credit Union, which caters to military servicemembers and their families and collected $335 million in overdraft fees, more than any bank except Chase and Wells Fargo and the most per account, more than even Wells Fargo. By contrast, several banks, such as Capital One, Citibank, and Ally, have completely eliminated overdraft fees while continuing to cover overdrafts.
The House also voted to overturn the CFPB’s Big Tech Payment App Oversight Rule, which allows the CFPB to ensure compliance with fraud, privacy and other laws by Big Tech payment apps like Venmo, CashApp, and Elon Musk’s soon-to-launch X Money. That measure will also head to President Trump’s desk having passed the Senate, with Sen. Hawley again serving as the sole Republican joining all Senate Democrats in opposition.
“Congress just voted to block the oversight needed to ensure that big tech companies comply with fraud and privacy laws. Without this protection, millions of people who use payment apps every day are at risk of losing their money to fraud schemes and having Big Tech companies harvest their private data,” said Carla Sanchez-Adams, senior attorney at the National Consumer Law Center.
Related Resources
- Press release: Chase, Wells Fargo, Navy Fed Top Overdraft Fee Offenders List, April 3, 2025
- Press release: Nearly Every GOP Senator Votes to Saddle Struggling Families With Excessive Overdraft Fees, March 27, 2025
- Press release: Court Permits Groups to Defend Overdraft Rule, March 5, 2025
- Press release: Senate, CFPB Move to Weaken Fraud and Privacy Protections in Payment Apps and Digital Wallets, March 4, 2025
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