What happened
Recently, Congress put the wealthy ahead of workers yet again! If you heard anything about “removing protections” or “letting banks charge more overdraft fees” it’s because that’s exactly what they did–letting big banks charge whatever fees they want when you run out of money.
Right now, there is no federal cap on how much a bank can charge you when your account overdrafts. That means a $50 light bill could turn into an $80 problem instantly. Most folks don’t have the funds to play these games!
How Did We Get Here?
- In December 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule that would limit overdraft fees at large banks to approximately $5.
- That rule was set to take effect in October 2025.
- Congress overrode the rule using the Congressional Review Act (CRA). They passed S.J.Res. 18, and the President signed it into law.
- The House voted 217-211 to strike down the $5 cap, and only one Republican crossed the aisle in the Senate to stand against this move with the Democrats.
- Now, banks are free to charge whatever they want for overdrafts.
Who’s Winning? Not You
- According to the CFPB, the rule could have saved the working class of this country $5 billion a year (about $225 per household that ends up paying overdraft fees).
- Big banks rake in around $8 billion each year from these fees.
- People living paycheck-to-paycheck—the most vulnerable—are hit hardest.
Let’s Be Clear: This Was a Decision Not for Us
This wasn’t about the free market or fairness. This wasn’t about making life easier for workers–this was about making it easier for the wealthy to take advantage of the rest of us.
- Republican lawmakers primarily sided with big banks over the people.
- The change also blocks future rules that look a lot like this one. So it’s not just this rule gone—future consumer protection is at risk.
- And many of these lawmakers are backed by banking, financial, and corporate donors.
You deserve better.
The Fight Ahead
Many of the programs that help renters could face changes or even total shutdown for next year given the current debate in Washington. Working America will be joining our allies in advocating for a fair economy and a government that gives working families what they deserve. Our strength comes from you – our members. Only by acting together can we fight back against the greedy corporations and their friends.
We’re asking all Working Americans to pledge to stay informed about what policies our leaders are advancing that support a fair economy and protecting consumers. Sign up here if you pledge to be part of that mission and if you want Working America updates and opportunities about a fair economy.
We know that these are uncertain times, and many of us are concerned about the future. Go to workingamerica.org/gethelp for more guides and tips on navigating the economy and preparing for the unknown.