Chairman Tim Scott’s resolution to overturn the Biden Consumer Financial Protection Bureau’s overdraft rule has successfully passed through the U.S. House of Representatives. The Congressional Review Act resolution, which aims to reverse the rule, had already cleared the Senate and now advances to President Trump’s desk for approval.
Scott has been vocal about his opposition to the CFPB overdraft rule, stating, “As I’ve said repeatedly, the Biden-era CFPB overdraft rule would harm the very consumers it’s supposed to protect and limit access to credit and important financial services for hardworking Americans. I’m grateful to House Financial Services Chairman French Hill for his leadership on this effort in the House, and I look forward to President Trump signing this resolution and overturning this misguided rule once and for all.”
The resolution follows a series of actions initiated by Scott. He previously called for a halt in financial rulemaking by the Biden administration, citing concerns over the CFPB’s aggressive agenda. After the overdraft rule was finalized in December 2024, Scott released an opposing statement and criticized CFPB Director Rohit Chopra for his rulemaking decisions.
The effort gained backing from significant industry stakeholders, including the Consumer Bankers Association, America’s Credit Unions, and others. They supported Scott and House Financial Services Committee Chairman French Hill in introducing the CRA resolutions.
In March 2025, the Senate passed Scott’s resolution. During his remarks, Scott underscored concerns that the rule could increase the number of unbanked individuals and reduce consumer choices. The Wall Street Journal Editorial Board supported this view, noting that the rule could lead banks to eliminate overdraft protection and raise other fees, ultimately impacting lower-income consumers adversely.
The resolution is now awaiting President Trump’s signature to become effective.
