Advocacy win: CFPB overdraft rule nullified with president’s signature

Securing a win for credit unions and consumers after months of successful advocacy, President Donald Trump signed the resolution of disapproval for the CFPB’s overdraft rule Friday, officially preventing the rule from going into effect via the Congressional Review Act. 

“America’s Credit Unions is appreciative that credit unions will be able to continue to offer responsible overdraft program,” said America’s Credit Unions President/CEO Jim Nussle. “With President Trump’s signature, the overly broad CFPB rule is now nullified. Credit unions provide their members with solutions to challenging financial problems every day and overdraft protection is one of those valuable solutions that credit union members can benefit from.” 

America’s Credit Unions strongly supported both legislative and judicial efforts to overturn the rule, sharing concerns it would harm consumers by removing a regulated service that consumers must choose to use from the marketplace. The resolution will make the lawsuit moot and the matter will be dismissed.