House votes to overturn Biden-era rule that would have limited overdraft fees to $5

[BumRushDaShow]

Source: Fortune

April 10, 2025 at 4:37 AM EDT


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. Banks and banking groups had previously sued over the rule, arguing that it would have led to consumers leaning on worse, less-regulated services. Republicans voted to undo the regulation under the Congressional Review Act, a 1996 law that allows Congress to reverse recently adopted rules.

Democrats strongly opposed the effort and said the rule would help consumers who can’t afford the fees. California Rep. Maxine Waters, the top Democrat on the Financial Services panel, said that Americans are “fed up with these junk fees” and want to get them under control. The rule, scheduled to go into effect in October, was part of Biden’s effort to reduce fees that hit consumers on everyday purchases, including banking services.

Read more: https://fortune.com/2025/04/10/house-overturn-biden-era-rule-bank-limited-overdraft-fees/

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Full headline: House votes to overturn Biden-era rule that would have limited overdraft fees to $5, allowing banks to again charge what they want

REFERENCE - https://www.democraticunderground.com/10143428409

The repeal of the Rule was done using the "Congressional Review Act" that allows Congress to express disapproval of a Rule promulgated by the Executive Branch via a Resolution that is subject to Presidential signature or veto (and we know what will happen with this).

[lapfog_1]

1. high prices at Wally World, compounding overdraft fees of $80 or more

tariffs are really taxes on the middle class and poor, more regressive than a flat tax.

And bank fees are an additional tax on the poor.

Sorry all you poor MAGATS, FAFO. Leopards / faces, etc.

Millionaires and billionaires do NOT pay overdraft fees...

[ck4829]

2. Weird how this passed in the Senate when usually 60 votes are required

[BumRushDaShow]

13. Since it is a special kind of resolution

it waives certain Rules of the House and Senate (including "cloture" in the Senate). The Roll Call vote for the Senate is here - https://www.senate.gov/legislative/LIS/roll_call_votes/vote1191/vote_119_1_00153.htm

Oddly enough, Hawley voted against it.

[Prof. Toru Tanaka]

3. Banks are full of shit.

My credit union’s overdraft fee is 10 dollars and they have overdraft protection.

I started using credit unions back in the 1980s when I was in the military. Each base had one and I got to really like them. We have a very good credit union in my county that I have been a member of for almost 30 years. I would never go back to having my accounts in a bank.

[Doodley]

4. Consumers last. That's the MAGA way.

[idahoblue]

5. This is why Democrats have to hit the ground running when they are the majority.

Waiting until they are voted out and leaving the building to make change does not work.
Should be ever win again, every bad law and executive order needs to be overturned on week one. Legislation needs to be passed the first few months. No waiting, no hand wringing.

[zeusdogmom]

6. You can flame me if you want however

Bank overdraft fees are self inflicted. I get it - budgets are tight, etc. But basic budgeting 101 - don’t spend money if it isn’t in your account.

For the record I believe the Biden era rule was a good one. Bank and other fees are out of control.

[Bengus81]

9. That's why there is a fee for an overdraft now--but not a raping because you went over a few bucks.

Watch what they'll start charging now. My guess would be $25-$39.00.

[sir pball]

22. So back to normal.

My overdraft fee with TD is $35. I did hit it once in 2008, but it was bullshit – they calculated transactions in one lump at the end of the day, first adding up all the debits and applying them to the opening balance, only then adding all the credits…so if you had $50 at 9am, put in $100 cash at 11am (cash is supposed to post immediately), then debited $75 at 6pm, they claimed you overdrew by $25 and dinged you.

I'm actually more surprised they haven't raised it in the intervening 17 years (they remind me of it in my yearly disclosures).

[Bengus81]

23. Yep....banks did that for years too before electronic transactions with checks.

They could show you overdrawn with hundreds of $$ in your account. It was a rip off then and now.

[FakeNoose]

16. I agree that SOME people would TAKE ADVANTAGE

It's not that I want the banks to make more money off of us ... hell no! But if the $5 overdraft fee went into effect, there are a lot of Americans who would immediately start writing NSF checks. That's just the way it is.

[raccoon]

17. Aren't you just a ray of sunshine?

[Johnny2X2X]

7. This is a huge deal to a lot of people

When you're living paycheck to paycheck, things happen, aut pays sometimes don't get taken out on time, or even get taken out early. Next thing you know it's a $37 fee, and then if you don't get the account positive another fee is applied. It can add up to disaster for a lot of families quickly.

[Bengus81]

8. Banks make $8 billion per year on the fee now and that's not enough?

Have an overdraft of measly $5-$10 we'll charge you $40-$50 or whatever WE decide. Meanwhile all that money in your checking makes you zero in interest,plus they bank big on charges that are pending.

[LetMyPeopleVote]

10. Who is surprised by this?

Banks and financial institutions are more important than citizens

[Blasphemer]

11. Yet another easy ad for Dems. nt

[kacekwl]

12. Did anyone bother to ask why ?

[BumRushDaShow]

14. This is one of those "elections have consequences" votes

Democrats all voted against this (except for 3 who didn't vote) and one Republican actually voted "nay" with Democrats (and they had 2 others who didn't vote). But we obviously don't have enough votes.

ETA - Roll Call vote - https://clerk.house.gov/Votes/202596?Page=2

[mdbl]

15. Because they care so much for their constituents

[OldBaldy1701E]

18. And, in response, the Democratic party did...?

Unless you all stop using banks and such, they are going to own you over such fees and there is nothing you can do about it. Soon, only the wealthy will be able to even have a bank account. Not that any of us will have anything to put in one.

All by design. And, we keep on trying to make their system work for us. Amazing, really.

[BumRushDaShow]

19. Not much can be done as long as Democrats are in the minority in Congress

What MIGHT be able to be done is more state regulation of some of these entities in blue states (depending on how the bank was chartered).

[OldBaldy1701E]

20. No offense, but you are still playing their game.

Why are you trying to keep on working a system that has been so corrupted that it cannot be equalized? Congress is controlled by money. They have all the money. (Well, most of it, which gives them control.)

When they remove elections in another year... then what? Or are we going to sit here declaring that 'they would never!' while they turn it all into an oligarchy... or worse, a theocracy?

I am getting very concerned that our side is either not aware of how bad this is, or is going the delusion route. History shows that populations have a sizeable amount who have a tendency to want to ignore things that they don't like to hear about, even if the topic affects them deeply.

Ignoring this is not going to end well for us. Historically, it never has.

[BumRushDaShow]

21. The other alternative

is "the 2nd Amendment solution".

It's one thing hurling barbs at certain alternate options and another actually coming up with a viable "solution". There are those who know how bad it is but it's a matter of how much "sacrifice" they are willing to make. "Stomping feet" and "pounding the podium" might soothe the restless but it is not effectuating an actual course change.

I have posted a number of times that we spend much of our money "helping people" and the other side spends it "hurting people" (by buying media that will promote RW lunatic propaganda 24/7 to brainwash the masses).

Perhaps we need to "stop feeding people actual edible food and feed them some 'brain food' through mass indoctrination" by putting the money into "media".

[OldBaldy1701E]

24. I disagree.

If 50 million people show up in Washington and demand that the current administration resign or we will come in and remove them ourselves, the only '2nd amendment solution' would come from the other side. We would not start anything. My concern is that we ought to be ready for said response and I am not seeing that at all. They will not hesitate to use force to get what they want. We need to be ready to respond to that. We don't have to shoot anyone. They will. And, they will have to answer for it. That escalation would be very detrimental to the current suspension of reality going on in this country. They can't afford that.

There is no way the current regime could do anything against such a number taking over D.C.. The whole area would grind to a halt and the local officials would be overwhelmed. And, if that orange gibbon decides to deploy the military, then they will have to contend with that decision, even as again, their numbers would not be sufficient. Would they bomb D.C. just to save their own skins? Some think they would.

Fifty Million People. Screw that next trip. Screw that gym and latte. Screw that slave owner who refer to themselves as the boss for the duration. If they can't understand the gravity of the situation, then they can go down with it. Those who can help others get to DC, help them. Those who can drive busses or even can get their hands on trains, load them up. And, we need to help each other through it. Make sure no one goes hungry. Every food truck owner should be helped to keep everyone fed. Make sure no one gets left out and abandoned because they could not afford to go. This is doable.

But, we won't. Ask yourself... why? Why won't we do what is necessary to remove this lunacy right now? Of course, there will be no 'profits' from any of this. There will not even be a break from the economic upheaval for a time. But, the end result? the fact that such upheaval would be greatly lessened from everyone pitching in to get us through. But, a few won't do it. A thousand won't do it. A million won't do it.

Millions will. Millions will change it all.

Why are we not changing it all? Why is that such an impossible task to accomplish?

And, for those who feel they have an answer, ask yourself why that is your answer. Don't stop with 'okay, that's why'. If the answer is valid, it will stand up to scrutiny. That is why we debate. To wean out this stuff. But, no one seems willing to really discuss options because we all have been programmed to only see it as 'black or white'. It is the same programming that tells us that if someone smokes one hit off of a joint one time, then they are a drug addict who needs to either be arrested or sent to treatment.

Call me delusional if you wish. The only reason my suggestions are not happening is that we are not willing to consider them. I hear others loudly demanding suggestions when people complain about things. Well, there they are. Not even going to consider them?

I'd rather be in the final position and admitting that we tried everything as opposed to being there wishing we had tried a few of the things that I and others have suggested but did not because of 'reasons'.

Maybe that is just me.

[BumRushDaShow]

25. To respond

If 50 million people show up in Washington and demand that the current administration resign or we will come in and remove them ourselves, the only '2nd amendment solution' would come from the other side. We would not start anything. My concern is that we ought to be ready for said response and I am not seeing that at all. They will not hesitate to use force to get what they want. We need to be ready to respond to that. We don't have to shoot anyone. They will. And, they will have to answer for it. That escalation would be very detrimental to the current suspension of reality going on in this country. They can't afford that.

You are lucky to maybe get a million or so to go there for an inauguration or special events. The logistics of that are enormous. Trying 50 million ain't happening. As many times as I have been down there, a couple drops of rain and the beltway is gridlocked.

And even with the protests that happen there, this administration is itching to invoke the infamous "Insurrection Act" so they can bring out "the big guns". THAT would need to be thought through.

There is no way the current regime could do anything against such a number taking over D.C.. The whole area would grind to a halt and the local officials would be overwhelmed. And, if that orange gibbon decides to deploy the military, then they will have to contend with that decision, even as again, their numbers would not be sufficient. Would they bomb D.C. just to save their own skins? Some think they would.

It would have ground to a halt way before that many showed up. Where people need to go is their OWN state Capitols - and unfortunately in some states that are geographically large, that is a chore and a long haul. But much of what needs to be done is at the state level as it is the states that create the federal congressional districts that have the bad actors coming from them.

Fifty Million People. Screw that next trip. Screw that gym and latte. Screw that slave owner who refer to themselves as the boss for the duration. If they can't understand the gravity of the situation, then they can go down with it. Those who can help others get to DC, help them. Those who can drive busses or even can get their hands on trains, load them up. And, we need to help each other through it. Make sure no one goes hungry. Every food truck owner should be helped to keep everyone fed. Make sure no one gets left out and abandoned because they could not afford to go. This is doable.

Like I said, these federal politicians get sent there from STATES. They didn't magically appear out of thin air in D.C.

But, we won't. Ask yourself... why? Why won't we do what is necessary to remove this lunacy right now? Of course, there will be no 'profits' from any of this. There will not even be a break from the economic upheaval for a time. But, the end result? the fact that such upheaval would be greatly lessened from everyone pitching in to get us through. But, a few won't do it. A thousand won't do it. A million won't do it.

Millions will. Millions will change it all.

Why are we not changing it all? Why is that such an impossible task to accomplish?

Until one understands that truism from Tip O'Neal - "All politics is local", then one will be chasing fantasies of "changing D.C."

And, for those who feel they have an answer, ask yourself why that is your answer. Don't stop with 'okay, that's why'. If the answer is valid, it will stand up to scrutiny. That is why we debate. To wean out this stuff. But, no one seems willing to really discuss options because we all have been programmed to only see it as 'black or white'. It is the same programming that tells us that if someone smokes one hit off of a joint one time, then they are a drug addict who needs to either be arrested or sent to treatment.

Call me delusional if you wish. The only reason my suggestions are not happening is that we are not willing to consider them. I hear others loudly demanding suggestions when people complain about things. Well, there they are. Not even going to consider them?

I'd rather be in the final position and admitting that we tried everything as opposed to being there wishing we had tried a few of the things that I and others have suggested but did not because of 'reasons'.

Maybe that is just me.

One needs to look at root causes and then go from there.

[OldBaldy1701E]

27. Root causes? Got it.

Capitalism.

That is the cause. Plain and simple. Unfettered, out of control capitalism.

We won't remove it. It is the core of our society. Any power anyone has these days comes from it. Even the prospect of saving society won't get enough people to stop supporting it. The 'greater good' is a phrase that only means 'helping the rich and screw everyone else' anymore. It is no surprise that enough people won't do it. They would have to be 'on our level' for once.

You are absolutely correct that they come from the states. Where are they now?

D.C..

Why wait till they scatter and divide our attempts to stop this? They are all in one place right now.

But, like you say, we won't do anything to really address what got us here. We are too far gone to even consider it.

And, people will keep on dying and the world will devote into chaos because of a little green piece of paper.

Not the rich though. We are making sure of that.

[BumRushDaShow]

28. "Why wait till they scatter and divide our attempts to stop this? They are all in one place right now. "

Next week they will ALL be on "District Work Periods" - i.e., Congress will NOT be in session for the "spring" (Easter/Passover) holidays.

SENATE
Apr 14 - Apr 25 State Work Period

HOUSE
April 14, 2025 April 15, 2025 April 16, 2025 April 17, 2025 April 18, 2025 April 19, 2025
April 20, 2025 April 21, 2025 April 22, 2025 April 23, 2025 April 24, 2025 April 25, 2025
District work periods

So after today, they will be "home" (and they typically aren't even in session on Fridays so may be gone already). Many times they will go on "junkets" overseas during extended breaks like this.

But this is when you get them.

[CousinIT]

26. House REPUBLICANS voted to do that. NOT the entire House. Fucking media always protecting the GOP. nt