House votes to overturn Biden-era rule limiting bank overdraft fees to $5, sends to Trump to sign
Source: Associated Press
House votes to overturn Biden-era rule limiting bank overdraft fees to $5, sends to Trump to sign
CORA LEWIS and MARY CLARE JALONICK
Wed, April 9, 2025 at 4:51 PM EDT 4 min read
NEW YORK (AP) — The House voted Wednesday to overturn a rule that would have limited bank overdraft fees to $5, following the Senate in moving to dismantle the regulation that the Biden administration had estimated would save consumers billions of dollars.
The resolution killing the rule, which passed the House 217-211, will now head to the White House for President Donald Trump's signature. Republicans argued that the “disastrous” regulation issued in the final days of President Joe Biden's term would have forced banks to stop offering overdraft protection altogether and made it harder for Americans to access credit.
“Competition and innovation, not government-mandated price caps, remain the best way to ensure consumers have access to affordable financial products and services,” said Arkansas Rep. French Hill, the chairman of the House Financial Services Committee.
Currently, the nation’s biggest banks take in roughly $8 billion in the charges every year, according to data from the Consumer Financial Protection Bureau and bank public records. Right now, there is no cap on the overdraft fees that banks can legally charge.
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Read more: https://finance.yahoo.com/news/house-votes-overturn-biden-era-205100869.html