President Trump has signed into law a resolution led by Chairman Tim Scott to overturn a rule from the Biden administration's Consumer Financial Protection Bureau (CFPB). The rule in question imposed price controls on overdraft fees, which, according to critics, would have reduced access to credit and financial services for many Americans.
Chairman Scott expressed his concerns about the rule, stating: "The Biden administration’s ill-conceived rule imposing new price controls on overdraft services provided by banks and credit unions harmed the very consumers the CFPB is supposed to protect. The rule would have reduced access to credit and important financial services and resulted in more unbanked Americans. That’s why I led the effort in Congress to overturn the rule, and I’m grateful for President Trump’s support to eliminate this misguided rule once and for all."
The process began when Chairman Scott sent a letter on November 17, 2024, urging the Biden administration's financial regulators to halt all rulemaking activities. He further criticized CFPB Director Rohit Chopra during a December committee hearing for not pausing these activities. After the finalization of the overdraft rule on December 12, 2024, Scott released a statement opposing it.
On February 13, 2025, both Chairman Scott and House Financial Services Committee Chairman French Hill introduced Congressional Review Act resolutions aimed at reversing the rule. This effort received backing from several key stakeholders including banking associations and credit unions.
The Senate passed Scott’s resolution on March 27, 2025. Prior to this vote, he highlighted that such regulations could lead to an increase in unbanked individuals and limit consumer options. The House followed suit by passing the resolution on April 9, 2025.
The Wall Street Journal Editorial Board commented that "Sen. Scott cited a Federal Reserve Bank of New York study that found such caps ‘hinder financial inclusion’ because ‘banks reduce overdraft coverage and deposit supply.’ The rule would cause banks to drop overdraft protection and raise other fees, including on checking accounts. Lower-income folks would lose access to the banking system and perhaps have to pay more to get payday loans."