119-SJRES-130 Journalist Public Summary
This resolution would overturn the CFPB’s 2025 move to withdraw its guidance on “improper overdraft opt‑in practices,” effectively restoring that guidance and limiting the agency’s ability to withdraw it again under the Congressional Review Act. (govinfo.gov)
Headline Summary
A Senate resolution to undo the CFPB’s 2025 withdrawal of its overdraft opt‑in guidance—so the guidance comes back and the CFPB can’t issue a substantially similar withdrawal again without new legislation. (govinfo.gov)
What It Does
The measure targets the CFPB’s May 12, 2025 rule that withdrew dozens of prior guidance documents—including Circular 2024‑05, which told banks they must have proof that a customer affirmatively opted in before charging overdraft fees on ATM and one‑time debit card transactions. If Congress passes this resolution, that withdrawal would have “no force or effect,” meaning the overdraft opt‑in circular would be restored. Under the Congressional Review Act (CRA), disapproving a rule also bars the agency from issuing a new rule that is “substantially the same” as the disapproved one unless Congress later authorizes it. (govinfo.gov)
Why It Matters
For consumers, restoring the circular would reinforce long‑standing rules that banks can’t charge overdraft fees on covered transactions without clear, verifiable opt‑in—potentially reducing surprise charges. For banks and credit unions, it would revive compliance expectations about retaining reliable opt‑in records (for in‑person, phone, or online enrollment), and re‑expose institutions to supervisory or enforcement scrutiny if those records are missing or misleading. (consumerfinance.gov)
Who’s For It
- Sponsor: Sen. Chris Van Hollen (D‑MD), who introduced S.J.Res. 130 on March 18, 2026. (govinfo.gov)
- Consumer‑protection advocates (e.g., National Consumer Law Center) who criticized the 2025 mass withdrawal of CFPB guidance and favor retaining such guidance to deter abusive fee practices. (library.nclc.org)
- Democratic Banking Committee members who have generally backed stronger oversight of overdraft fees and related CFPB actions (context for caucus support). (vanhollen.senate.gov)
Who’s Against It
- Banking and credit‑union trade groups (e.g., American Bankers Association) that previously urged the CFPB to rescind the overdraft opt‑in circular, arguing it imposed new expectations and record‑keeping burdens. They are likely to oppose restoring it via CRA. (aba.com)
- Industry counsel analyses welcoming the broader 2025 rollback of CFPB guidance, signaling preference to keep the withdrawal in place rather than revive prior circulars. (morganlewis.com)
What’s Next
Status as of April 28, 2026: The resolution was introduced March 18 and has been placed on the Senate Calendar following referral to (and discharge from) the Banking Committee under CRA procedures; the next step would be potential floor consideration and a vote. If it passes both chambers and becomes law, the 2025 withdrawal is nullified and the overdraft opt‑in circular is restored; CRA would also bar a substantially similar withdrawal in the future. (govinfo.gov)
Discussion