Republicans Just Made It Easier for Banks to Screw People Over
The Senate has voted to roll back a key consumer protection.

Senate Republicans voted Thursday to overturn a $5 cap on bank overdraft fees, leaving working-class people vulnerable to exploitation from financial institutions.
The Consumer Financial Protection Bureau adopted the cap late last year. It was scheduled to take effect later in 2025.
The rule was meant to protect consumers from unreasonable fees levied by banks and credit unions, saving consumers an estimated $5 billion per year total.
Chuck Bell, the advocacy program director at Consumer Reports, warned that repealing the fee limits “will hurt working families who are already struggling with high prices and inflation.” While Donald Trump has made plenty of promises to make the cost of living more affordable, he has functionally rubber-stamped the efforts of Republicans to undermine that very promise.
The resolution to repeal the rule was introduced by Senator Tim Scott, chairman of the Senate Banking Committee, and done through the Congressional Review Act, which allows lawmakers to undo recently adopted regulations through a simple majority vote.
The resolution passed in the Senate on a nearly party-line vote of 52–48.
Missouri Senator Josh Hawley was the only Republican to oppose the measure. “Why would we help the big banks at the expense of working people?” Hawley said, after the vote. “I just don’t understand it.”
Every Senate Democrat voted against the measure.
Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee who helped establish the CFPB, slammed her Republican colleagues for undermining the consumer to help big banks. “Senate Republicans would rather you didn’t find out they just voted to give the biggest banks billions in profits from overdraft fees that kick working people when they’re down. Disgraceful,” she wrote on X Thursday.
The resolution is now expected to move to the House.
Former Secretary of Transportation Pete Buttigieg urged voters Thursday to contact their representatives to “ask how they’ll vote.”
“Moment of clarity today in the Senate where Republicans sided with big banks & against customers. Higher fees, lower transparency,” Buttigieg wrote on X.
The CPFB’s rule previously faced a legal challenge from the American Bankers Association, which claimed that the agency had overstepped its authority to impose the rule, which would ultimately hurt consumers. Rob Nichols, the trade group’s chief executive, issued a statement applauding the resolution’s passage in the Senate.
“If implemented, the C.F.P.B.’s 11th-hour rule imposing government price controls would force many banks to limit or eliminate overdraft protection as we know it,” Nichols said. “Many Americans would be driven to less regulated and higher risk non-bank lenders to cover unexpected or emergency expenses.”
The Trump administration seems interested in eliminating the CFPB altogether. “CFPB RIP 🪦,” Elon Musk wrote on X in February.