For Immediate Release: April 9, 2025 

Contact: press@borrowersaction.org

 

Congressional Republicans Deliver Wins for Big Banks and Big Tech at the Expense of Working Families ​

Votes Repeal CFPB Rules that Cap Overdraft Fees at $5 and Protect Consumers’ Financial and Data Security on Digital Payment Apps like XMoney

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WASHINGTON, D.C.  — Today, MAGA Republicans voted to repeal two Consumer Financial Protection Bureau (CFPB) Rules, finalized during the Biden-Harris Administration to protect consumers’ pocketbooks and financial security.

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These representatives voted to overturn a December 2024 CFPB Overdraft Loophole Rule that would have reduced the cap on bank overdraft fees from $35 to just $5. The rule would pass along up to $5 billion in annual overdraft fee savings to consumers—$225 per household that pays overdraft fees. Additionally, Congressional Republicans voted to repeal a November 2024 CFPB Digital Payment Apps Rule that would give the CFPB greater oversight over non-banking peer-to-peer services such as Venmo, CashApp, and Elon Musk’s XMoney. The rule would have ensured that big tech platforms do not misuse users’ data and would have protected users from being debanked or defrauded. With the House passage, the resolutions of disapproval head to President Trump’s desk for his signature. 

 

The move is the latest action by Republicans to dismantle the CFPB despite the monumental benefit it has for consumers. Representatives who voted to overturn the rule include:

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• Representatives Young Kim (CA-40) and David Valadao (CA-22): In 2024, nearly 850,000 Californians sought the CFPB’s help against abusive, predatory, and deceptive practices, including over 3,100 complaints related to overdraft fees.

 

• Representative Scott Perry (PA-10): In 2024, 350,000 Pennsylvanians sought the CFPB’s help against abusive, predatory, and deceptive practices, including over 1,000 complaints related to overdraft fees.
   

• Representative Tom Barrett (MI-07): In 2024, 180,000 Michiganders sought the CFPB’s help against abusive, predatory, and deceptive practices, including over 700 complaints related to overdraft fees.
   

• Representative David Schweikert (AZ-01): In 2024, nearly 132,000 Arizonans sought the CFPB’s help against abusive, predatory, and deceptive practices, including 600 complaints related to overdraft fees.
   

• Representative Gabe Evans (CO-08): In 2024, 65,000 Coloradans sought the CFPB’s help against abusive, predatory, and deceptive practices, including 400 complaints related to overdraft fees.
   

• Representatives Mariannette Miller-Meeks (IA-01) and Zach Nunn (IA-03): In 2024, 20,000 Iowans sought the CFPB’s help against abusive, predatory, and deceptive practices, including over 120 complaints related to overdraft fees.
   

• Representative Don Bacon (NE-02): In 2024, nearly 17,000 Nebraskans sought the CFPB’s help against abusive, predatory, and deceptive practices, including roughly 70 complaints related to overdraft fees. 

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“Congressional Republicans continue to dodge meeting their constituents back home, while voting in Washington to jack up their costs and leave them at the mercy of exploitative big banks and big tech,” said Aissa Canchola Bañez, Political Director for Protect Borrowers Action. “Their tax season surprise is to saddle households in their districts with $225 in overdraft fees. And as thousands of Americans file complaints about financial fraud online, Republicans’ answer is to remove guardrails that protect consumers on platforms like Elon Musk’s XMoney. Repeal of the rule means there are fewer restrictions to Elon Musk arbitrarily removing or debanking X users from the ‘super app,’ threatening their financial security.” 

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Polling conducted last month by Pew found that 7 in 10 Americans believe a $35 overdraft fee is unfair and 84% of Americans encourage the government to intervene to get banks to cut overdraft fees. More broadly, a March poll showed that more than 8 in 10 Americans, including 79% of Republicans—an overwhelming bipartisan majority—support the CFPB’s mission of regulating financial services. ​

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About Protect Borrowers Action

Protect Borrowers Action educates, activates, and mobilizes Americans with student debt to hold right-wing officials accountable for their efforts to deny borrowers life-changing relief and keep them drowning in student debt. PBA is a fiscally sponsored project of Fund for a Better Future, a 501(c)(4) nonprofit organization. Learn more at borrowersaction.org.