The House passed a resolution nullifying the Consumer Financial Protection Bureau’s (CFPB) final rule imposing a cap on overdraft fees charged by depository institutions.
The 217-211 vote to repeal the controversial rule that would limit the maximum fee consumers could be charged for a single overdraft at $5 came less than two weeks after the Senate approved the measure in a 52-48 decision along party lines.
While consumer advocacy groups contend the rule would be beneficial to consumers struggling to make ends meet, the financial services industry has argued the exact opposite.
“Consumers have indicated time and time again that they value and appreciate this highly regulated service and don’t want banks to discontinue offering it because of a rule that imposes unlawful government price caps,” the American Bankers Association wrote in a statement. “Congress has acted decisively to right that wrong and ensure America’s banks can continue offering this important, optional service consumers rely upon to meet their short-term financial needs. We appreciate the administration’s support and look forward to President Trump quickly signing this resolution into law.”
The legislation will now move on to President Donald Trump for approval before it can become law.
Dodd Frank Update will have more on this story shortly.