DCUC Commends Senate Leadership for CRA Resolution to Overturn CFPB Overdraft Rule

WASHINGTON, D.C. – The Defense Credit Union Council (DCUC) expressed its opposition to the Consumer Financial Protection Bureau’s (CFPB) final rule on overdraft fees in a letter to Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-SC).
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The CFPB’s new rule, issued in December 2024, applies to financial institutions with more than $10 billion in assets and mandates that these institutions either cap most overdraft fees at $5 or treat overdraft programs as credit under the Truth in Lending Act (TILA). 

​In its letter, DCUC strongly supports Senator Scott’s leadership in introducing a Congressional Review Act (CRA) resolution to overturn the CFPB’s rule and commends his efforts to bring the measure before the Senate.

​"While framed as a consumer protection initiative, this rule imposes unintended and detrimental consequences on credit unions and the military communities they serve," says DCUC Chief Advocacy Officer Jason Stverak. "Overdraft protection is a valuable, voluntary service that helps members manage short-term cash flow gaps and avoid more costly penalties, such as bounced checks, late fees, or utility disconnections. The CFPB’s arbitrary $5 cap disregards the operational costs of providing this service and the preferences of consumers who have actively opted in for the flexibility it offers."

Stverak stresses that the impact of the CFPB’s rule on defense credit unions is particularly severe. “Our member institutions serve military personnel and their families, many of whom face unique financial challenges due to frequent relocations, deployments, and unpredictable duty schedules. Overdraft services often serve as an essential safety net for these members, helping ensure financial obligations are met when circumstances prevent timely account management. Removing or limiting access to overdraft protection would undermine the financial readiness of our service members and leave them more vulnerable to fees from missed payments or insufficient funds.”
 
The rule also places significant compliance burdens on credit unions, particularly those committed to member service rather than profit maximization. Reclassifying overdraft protection as a credit product under TILA would require costly system overhauls, additional disclosures, and extensive compliance measures—despite members having already opted in with full awareness of the terms. This regulatory strain creates uncertainty for many credit unions, especially those nearing the $10 billion asset threshold, and threatens their ability to serve their communities effectively.
 
DCUC applauds Senator Scott’s use of the Congressional Review Act to restore balance and oversight to the regulatory process. His resolution (S.J. Res. 18) appropriately recognizes the need for congressional intervention when agency rules overreach their authority or create unintended harm to consumers. DCUC also acknowledges the growing bipartisan support for this initiative in both the Senate and the House.
 
"We commend Senator Scott’s leadership in protecting consumers, restoring regulatory balance, and preserving access to fair, flexible financial services," says Anthony Hernandez, DCUC President/CEO. "DCUC remains committed to advocating for the financial well-being of service members, veterans, and their families, and we urge Congress to act swiftly in overturning this burdensome regulation."
 
For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.