What They Are Saying: Hardworking Americans Value Overdraft Services as a Financial Lifeline

WASHINGTON, D.C. — As the U.S. House of Representatives prepares to vote this week on a Congressional Review Act (CRA) resolution to overturn the Biden-era Consumer Financial Protection Bureau (CFPB) rule on overdraft, it’s important to remember what’s at stake for millions of hardworking Americans. At the heart of the debate is the future of overdraft services — a vital financial tool many rely on to manage unexpected expenses and make ends meet.

Here's what consumers from across the country are saying about overdraft services:

Hardworking Americans, including those with lower incomes that lack other alternatives like credit cards, describe overdraft services as an essential financial bridge.

“Because [overdrafting is] the fastest way to pay a bill with money that you don't have.” – Consumer from Pennsylvania, income between $50K and $75K

“I need to overdraft my account each month just to get by.” – Consumer from Massachusetts, income less than $35K per year and reported being a frequent overdraft user

“I knew the penalty and I had to do it, I was running so low on food. I am currently under-employed. I have some on-call part time jobs but that is not enough…” – Consumer from Texas, income less than $35K per year

“I have overdrafted my account a lot to pay bills.” – Consumer from Pennsylvania, income between $35K and $50K

“I have no other options. I cannot borrow money, and do not have credit.” – Consumer from Oregon, income less than $35K per year

Consumers cite overdraft services as a tool that facilitates personal responsibility and preserves their personal pride.

“I used overdraft services because I hate asking anybody for money. I feel like a bum when I ask but if its [sic] my last option I will.” – Consumer from North Carolina, income less than $35K per year

“There's been times I've had to overdraft my account due to bills. I'm very independent and rarely ask for help unless I really need it. Overdraft services help so I can reduce having to pay other people.” – Consumer from Ohio, income between $35 and $50K per year

“Because at least that way you’re not asking to borrow money.” – Consumer from Minnesota, income between $75K and $100K per year

“It’s easy money and I’m not borrowing from family or friends, I’m borrowing from myself.” – Consumer from Virginia, income less than $35K per year

“Because a lot has been going on, Financial Freedom is the most important thing in the world right now and we need to be more accountable.” – Consumer from North Carolina, income between $100K and $200K per year

About the CRA Resolutions

Senate Banking Committee Chair Tim Scott (R-S.C.) and House Financial Services Committee Chair French Hill (R-Ark.) last month introduced CRA resolutions to invalidate the CFPB overdraft rule. The House Financial Services Committee approved the resolution earlier this month and the Senate approved the resolution last week. It now awaits a floor votes in the House.

Contrary to false messaging from former Biden Transportation Secretary Pete Buttigieg and others about what the resolutions would do, these resolutions, if approved and signed into law by President Trump, would preserve consumer choice to a myriad of overdraft services that best meet their needs.

CBA Advocacy

• To view CBA's national empirical survey exploring use and sentiment regarding  overdraft services, from which these quotes were taken, click HERE.
• To get the facts on the value of overdraft services, learn why government mandates are misguided, and read what others are saying about this misguided rule, visit OverdraftFacts.com.
• To read PolitiFact’s fact check about Pete Buttigieg’s false claims about the overdraft CRA, click HERE.
• To read CBA’s letter of support to lawmakers urging them to approve the overdraft CRA resolutions, click HERE.
• To read CBA President and CEO Lindsey Johnson’s statement on filing litigation against the CFPB overdraft rule, click HERE.
• To view CBA’s recent industry survey demonstrating the reduction in consumer liquidity posed by the CFPB’s rulemaking, click HERE.
• To view CBA’s analysis of the cumulative impact of the CFPB’s overdraft rule on banks’ ability to offer low and no-cost checking products, click HERE.