CBA, Financial Trades and Banks Issue Statement on Litigation Against Biden-Era CFPB Overdraft Rule

WASHINGTON, D.C. – The Consumer Bankers Association (CBA) – along with the American Bankers Association (ABA), America’s Credit Unions, Mississippi Bankers Association, and banks directly affected by the Biden-Chopra Consumer Financial Protection Bureau's (CFPB) rule on overdraft services – issued the following statement in response to President Donald J. Trump signing the Congressional Review Act (CRA) resolution to prevent the rule from taking effect and its impact on pending litigation:

"While we have been confident in the merits of our case, we are pleased to see President Trump and Congress repeal this unlawful rule through CRA. President Trump’s signature doesn’t just preserve access to this essential financial lifeline for millions of Americans who need it; it also means our litigation against the CFPB challenging this rule is now moot.

“The rare use of the CRA underscores what we have long said: the Biden-Chopra CFPB’s midnight rulemaking far exceeded the Bureau’s statutory authority and would have negatively impacted access and choice of highly competitive, heavily regulated overdraft services that consumers rely on and value to help make ends meet."