“The Senate voted 52-48..to overturn a Consumer Financial Protection Bureau rule capping the overdraft fees that banks can charge, in another blow to the beleaguered agency.
The resolution under the Congressional Review Act now heads to the House, where the Financial Services Committee approved a companion bill on a 30-19 vote earlier this month. CRAs both invalidate regulations and preclude future administrations from introducing “substantially similar” proposals.”
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“The Biden administration finalized the overdraft rule — part of its campaign against so-called junk fees — in December, to the chagrin of Republicans who had asked financial regulators to pause rulemaking after the election until the new administration was sworn in. Banks, which say the rule would limit their ability to offer overdraft coverage, fiercely opposed the regulation and sued to stop it hours after it was finalized.”
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“Under the rule crafted by former CFPB Director Rohit Chopra, banks and credit unions with more than $10 billion in assets would have three options when a consumer overdraws their account: charging $5; charging a fee that covers no more than costs or losses; or disclosing the terms of a profit-generating overdraft loan as they would with other loans.
Sen. Josh Hawley (R-Mo.), the lone Republican to vote against overturning the rule, said the regulation would “save the average working class household something like $265 a year.”
“I do not want to give big banks the ability to charge people outrageous sums of money,” Hawley said. “Under this… they can charge whatever their expenses are on an overdraft, and if that’s more than $5 per overdraft, they’re allowed to charge that, but they’re not allowed to charge anything more.”
Banks currently charge an average fee of $35 to extend overdraft services. The CFPB estimated the rule would save consumers $5 billion in fees per year.”
https://www.politico.com/live-updates/2025/03/27/congress/senate-overturn-cfpb-overdraft-rule-00251896
“Elon Musk — who, along with Vivek Ramaswamy, has been tasked by President-Elect Trump with running a new Department of Government Efficiency — posted on his platform X that he wants to “Delete CFPB,” referring to the Consumer Financial Protection Bureau. The agency, Musk said, was part of a problem of “too many duplicative regulatory agencies” in Washington. But there are no other agencies in the federal government returning money to Americans’ bank accounts in the way the CFPB does.
Since its founding, the agency has returned more than $19 billion in cash to people who have been scammed by financial institutions, including predatory payday lenders and even some of the largest banks in the country. It has done so under Republican and Democratic presidents, including major actions against Wells Fargo and Equifax during President Trump’s first term in office, which, combined, returned $425 million to consumers. (Those actions both began under the Obama administration, but Trump’s CFPB directors oversaw the execution of those fines.)”
https://finance.yahoo.com/news/opinion-elon-musk-wants-delete-143000169.html
False information accepted as true by Joe Rogan about the Consumer Financial Protection Bureau.
https://www.youtube.com/watch?v=Pk3iloKjpxA
“Large banks will have to cap overdraft fees charged when customers try to withdraw more money than is available in their accounts, the CFPB announced Thursday. Under the new rule, which has been in development since early this year, banks will be allowed to charge no more than $5 for overdraft fees, or will have to set fees to ensure they are only covering costs and not earning a profit from them.
There are currently no limits on those fees, and the average overdraft fee is about $35, according to the CFPB. The bureau estimates that the new rule will save consumers about $5 billion annually.
But there will certainly be some unintended consequences to the change, as there are any time a price control—which is, broadly speaking, what this rule amounts to—is mandated. Rather than charging overdraft fees to cover an excessive withdrawal, banks may revert to the older practice of simply declining those transactions.
As Jon Berlau, a senior fellow at the Competitive Enterprise Institute, explained to the CFPB in 2022, the introduction of overdraft fees was originally a consumer-friendly development that was initially offered only to bank’s wealthier clients but eventually became commonplace.
Indeed, many banking customers would likely prefer paying a nominal fee versus the frustration of not being able to pay for some vital purchase. That choice might soon be taken away.”
https://reason.com/2024/12/12/capping-overdraft-fees-will-hurt-some-of-the-people-it-is-supposed-to-help/
“the justices largely focused on the question of whether the president may remove the CFPB’s sitting director at will.
A majority of the Court agreed that a president may remove the CFPB director. In the short term, that decision could benefit presumptive Democratic presidential nominee Joe Biden, who will be able to remove Trump’s CFPB director right away if Biden becomes president. In the long term, however, the decision could potentially empower the president to manipulate the political process.”
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“So the immediate upshot of Seila Law is that the CFPB survives this attempt to strike it down in its entirety, and Democrats gain the power to remove Trump’s CFPB director if Biden is sworn in next year. But it is unlikely that we will know the full significance of Seila Law until the Court hears a new case testing its meaning.”
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“Most independent agencies — including the Fed and the FCC — are led by a multi-member board.
The CFPB is unusual, though not entirely unique, in that it is led by a single director who could not be removed at will by the president. This unusual leadership structure, according to Roberts’s majority opinion, is not allowed. According to Roberts, the Constitution “scrupulously avoids concentrating power in the hands of any single individual.””
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“there are very good reasons why we do not want some agencies to be fully subject to presidential authority. If the president can threaten to fire Fed governors or FCC commissioners, those agencies might try to influence the result of an election in illegitimate ways.
And while much of Roberts’s decision focused on the CFPB’s single-director structure, it is far from clear, after Seila Law, whether multi-member agencies like the FCC or the Fed may remain independent.”