Trump Voids Two CFPB Rules: What It Means for Overdraft Fees and Fintech
On May 9, 2025, President Trump signed two Congressional Review Act (CRA) resolutions nullifying key CFPB rules issued in the final stretch of the Biden administration. The repealed rules would have restricted overdraft fees at large banks and expanded the CFPB’s supervisory authority over nonbank fintechs.
What Was Struck Down
Overdraft Rule: Would have reclassified overdraft programs as credit products under Reg Z, imposing fee caps and compliance obligations on large depositories.
Nonbank Supervision Rule: Sought to bring large digital payment platforms (e.g., wallets, P2P apps) under direct CFPB supervision.
These rules are now void, and under the CRA, cannot be reissued in “substantially similar” form without new legislation.
Strategic Impact for Financial Institutions
Banks & Credit Unions: Gain flexibility in overdraft fee structure—but UDAAP scrutiny and state enforcement remain live risks.
Fintech & Payment Platforms: No longer subject to CFPB exam authority, reducing compliance burden—but CFPB enforcement powers still apply.
Bottom Line
These repeals curb CFPB supervision but don’t eliminate regulatory risk. Use this window to recalibrate your compliance strategy, reinforce your UDAAP controls, and assess how state-level enforcement could fill the federal gap.
For more information on what this shift means, contact Troy Garris at troy@garrishorn.com.