Pallone: House Republicans Want to Let Banks Rob You


WASHINGTON, D.C. – Congressman Frank Pallone, Jr. (D-NJ) released the following statement ahead of a House vote to repeal the Consumer Financial Protection Bureau’s (CFPB) rule capping excessive overdraft fees:

“Trump promised to lower egg prices. Instead, Republicans are gutting the rules to let banks charge you $35 per transaction to use your own checking account.  Overdraft fees are one of the most predatory practices in the financial system, and the Consumer Financial Protection Bureau’s rule finally puts guardrails in place. Repealing it means banks can run up the score on their customers with $35 fees even for small transactions. This is a Republican handout to the financial industry at the expense of everyday Americans. I’m voting no,” said Pallone.

The CFPB — established in the wake of the 2008 financial crash — finalized the overdraft fee rule in December after years of research and public input. The rule would cap overdraft charges and save consumers billions each year. Repealing it allows banks to continue charging as much as $35 per overdraft — often for small, short-term charges that disproportionately hit low-income families. According to the CFPB, the final rule is expected to result in $5 billion in annual overdraft fee savings to consumers, or $225 per household that pays overdraft fees. The overdraft final rule will take effect on October 1, 2025.