Summary of H.J. Res. 59: Disapproving the Overdraft Lending Rule

Bill Overview

• Bill Number: H.J. Res. 59
• Title: Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions"
• Status: Reported by the Committee on Financial Services (H. Rept. 119-26)
• Introduced: February 13, 2025
• Classification: Joint Resolution

Purpose and Intent

H.J. Res. 59 aims to disapprove a rule established by the Bureau of Consumer Financial Protection (CFPB) that regulates overdraft lending practices for financial institutions with assets exceeding $10 billion. The resolution seeks to nullify this rule, which the sponsors argue imposes excessive government control over overdraft fees, potentially limiting consumer options and access to financial services.

Key Provisions

• Disapproval of CFPB Rule: The resolution explicitly disapproves the CFPB's final rule regarding overdraft lending, which was published in the Federal Register on December 30, 2024.
• Overdraft Fee Regulations: The CFPB's rule introduces two main options for financial institutions:
  1. Courtesy Service: Institutions can offer overdraft as a courtesy, adhering to a $5 price cap set by the CFPB.
  2. Loan Treatment: Alternatively, overdraft can be treated as a loan, subjecting it to the Truth in Lending Act (TILA) and requiring more stringent disclosures.
• Impact on Financial Institutions: The resolution argues that the rule's requirements could lead to fewer overdraft protection options for consumers and complicate the management of these services for financial institutions.

Impact and Affected Parties

• Financial Institutions: The rule primarily affects banks and credit unions with assets over $10 billion, imposing new compliance burdens and potentially altering their overdraft service offerings.
• Consumers: Proponents of the resolution claim that the CFPB's rule may ultimately harm consumers by reducing access to overdraft services, which many rely on for short-term financial needs. Critics argue that the rule could lead to increased costs or the elimination of overdraft protection programs.

Procedural Timeline

• February 13, 2025: Bill introduced and referred to the House Committee on Financial Services.
• March 5, 2025: Committee consideration and mark-up session held; ordered to be reported by a vote of 30-19.
• March 21, 2025: Reported by the Committee on Financial Services and placed on the Union Calendar.

Sponsors

The resolution is primarily sponsored by J. French Hill and has multiple cosponsors, including:
- Ann Wagner
- Barry Loudermilk
- Mike Haridopolos
- Dusty Johnson
- Maria Elvira Salazar
- Tim Moore
- Glenn Grothman
- Andrew Ogles
- Ralph Norman
- Byron Donalds
- Bill Huizenga
- Daniel Meuser
- Roger Williams
- Troy Downing
- Andy Barr
- Mike Ezell

Related Legislation

• Companion Bill: SJRES 18

This summary provides a comprehensive overview of H.J. Res. 59, detailing its purpose, key provisions, potential impacts, and procedural history, aimed at informing readers about the implications of this legislative action.