New York (AP) – The House votes on Wednesday to cancel a rule that will have limited banks overdraft fees up to $ 5, after the Senate when moving the regulation that the Biden administration has estimated to save billions of dollars.
The resolution killing the rule that went into the house 217-211 will now head to the White House for the signature of President Donald Trump. Republicans claim that the “catastrophic” regulation issued in the last days of President Joe Biden’s term of office will force banks to stop offering overdraft protection and make it difficult for Americans to have access to credit.
“Competition and innovation, not the pricing limits, not to guarantee that consumers have access to affordable financial products and services,” said Arkansas reporter French Hill, chairman of the Chamber’s Financial Services Committee.
Currently, the largest banks in the country are taking approximately $ 8 billion dollars each year, according to data from the Bureau of Financial Protection of Consumers and the public records of the banks. There is currently no restriction on overdraft fees that banks can legally charge.
Banks and banking groups were previously tried for the rule, arguing that this would lead to consumers who leaned against worse, less regulated services. Republicans voted to repeal the regulation under the Congress Review Act, the 1996 Law, which allows Congress to cancel recently adopted rules.
The Democrats strongly opposed the efforts and said that the rule would help consumers who could not afford fees. California representative Maxine Waters, the best Democrat in the financial services panel, said Americans were “tired of these junk fees” and wanted to drive them under control.
The rule to come into force in October was part of Biden’s efforts to reduce the fees that hit consumers on daily purchases, including banking services. CFPB estimated that the rule would save consumers about $ 5 billion annual overdraft fees or $ 225 per household, which usually test the fees. Biden had summoned the fees that could reach $ 35 per transaction, “operating”, and consumer defenders pointed out that they had hit the most boss customers of banks.
Republican efforts to revoke the rule are “shamefully aimed at the American people,” said reporter Rashida Tlya, D-Mich.
When the bank temporarily borrows money for consumers after their account has reached a zero balance, the user is usually responsible for paying both the excess amount and the additional fee, which may be more than the original amount. In one example, a cup of $ 3 can cost some more than $ 30.