House Votes to Repeal CFPB Overdraft Fee Cap, Tech Oversight

The Republican-controlled House of Representatives has voted to overturn two Consumer Financial Protection Bureau (CFPB) rules aimed at capping bank overdraft fees and overseeing digital payment apps, sending the resolutions to President Trump for his signature. The House's decision to eliminate a proposed $5 cap on overdraft fees, which was expected to save consumers around $5 billion annually, reflects a significant win for the banking industry and Big Tech firms like Apple and Google. Proponents of the rollback argue that the regulations would hinder competition and innovation, while critics highlight that low-income consumers will bear the brunt of increased fees. The resolutions utilize the Congressional Review Act, allowing Congress to nullify recently adopted regulations and preventing similar rules in the future. This action continues the trend of dismantling consumer protections established in response to the 2008 financial crisis. Democrats vehemently opposed the measures, asserting they would exacerbate financial hardships for vulnerable consumers.