The Leadership Conference Opposes S.J. Res. 18, the Resolution to Overturn the CFPB Overdraft Rule
View a PDF of the letter here.
March 26, 2025
Dear Member of Congress,
On behalf of The Leadership Conference on Civil and Human Rights, a coalition of more than 240 national civil and human rights advocacy organizations, I urge you to oppose S.J. Res. 18, which would overturn a Consumer Financial Protection Bureau (CFPB) rule that reins in overdraft fees charged by many of the country’s largest banks. The Leadership Conference intends to record your vote on this resolution in our voting record for the 119th Congress.
In recent decades, many banks have used overdraft fees to rake in massive profits on the backs of consumers who are struggling to live paycheck to paycheck. They do so by exploiting a regulatory loophole that was meant to apply to paper checks. While overdraft charges are often pitched as a “courtesy” to consumers, they have historically worked as very high-cost loans, with fees that are often greater than any purchase being made. High fees have driven many people out of the banking system altogether, particularly people of color, people with low incomes, and people with disabilities.
As the text of the resolution notes, the CFPB rule applies to “very large financial institutions,” with more than $10 billion in assets. The rule lowers most overdraft fees charged by big banks from $35 to $5 and gives banks consumer-friendly options to cover overdrafts, including charging lower fees, linking to other consumer accounts, or offering fair and transparent overdraft lines of credit. The rule was finalized after some of the largest banks in the country voluntarily and laudably instituted their own major reforms of overdraft practices in recent years. The CFPB rule is crucial because it levels the playing field across all banks, rewards good actors, and builds overall consumer trust in the banking system.
For these reasons, The Leadership Conference urges you to oppose S.J. Res. 18. If you have any questions, please feel free to contact Rob Randhava, senior counsel, at [email protected].
Sincerely,
Jesselyn McCurdy
Executive Vice President of Government Affairs