A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Bulletin 2022-06: Unfair Returned Deposited Item Fee Assessment Practices".

Legislative bill overview

This joint resolution invokes the Congressional Review Act (CRA) to disapprove of the CFPB's decision to withdraw its 2022 guidance on unfair practices related to returned deposited item fees (overdraft and NSF fees). If passed, it would prevent the CFPB from withdrawing that consumer protection guidance and force the agency to maintain the rule.

Why is this important

Returned deposited item fees are a significant source of bank revenue and disproportionately affect lower-income consumers who live paycheck-to-paycheck. The 2022 guidance signaled the CFPB's position that certain fee practices could constitute unfair conduct; blocking its withdrawal would reinforce consumer protections in this area, while allowing withdrawal would give banks more flexibility in fee structures.

Potential points of contention

• Regulatory authority debate: Whether the CFPB overstepped its authority in issuing the original guidance, or whether Congress should constrain agency discretion to modify its own positions
• Consumer protection vs. banking industry flexibility: Consumer advocates argue predatory fee practices harm vulnerable populations; banking industry argues excessive regulation increases costs and reduces access to banking services
• Procedural CRA use: Whether the CRA—typically used for major regulations—is appropriate for withdrawing non-binding guidance rather than formal rules with binding legal force