'Direct attack': GOP lawmaker proposes letting banks hike overdraft fees

Republicans are moving forward with a resolution to nullify a Biden-era reform that protects against excessive overdraft fees when banking, Rolling Stone reported Tuesday, in what reporter Nikki McCann Ramirez described as a "direct attack on consumers." The rule in question, passed by the Consumer Financial Protection Bureau and part of a broader war by the Biden administration on so-called "junk fees" meant to surprise consumers, prevents banks from charging more than $5 in penalties if an account holder overdraws from their account. This regulation "gave banks several options to manage overdraft costs without placing an excess burden on consumers" — nevertheless, Republicans have vowed to eliminate this regulation, and the Trump administration is in favor of the effort. The resolution takes advantage of a procedure called the Congressional Review Act, whereby both chambers of Congress can "disapprove" by a simple majority of a rule passed by a regulatory agency within a certain time, and if signed by the president, the rule will be permanently proscribed from that agency's powers.