On May 9, 2025, President Donald Trump signed a Congressional Review Act resolution (S.J. Res. 18) nullifying the Consumer Financial Protection Bureau’s (CFPB) overdraft rule, which had been finalized in December 2024.
The rule would have limited overdraft fees to $5 at financial institutions with more than $10 billion in assets—unless they either set a fee based on their actual costs or treated the overdraft as a loan subject to Truth in Lending Act and Regulation Z disclosures.
The rule was scheduled to take effect on October 1, 2025. In response, America’s Credit Unions filed a lawsuit to block the rule. The California Credit Union League and Nevada’s Credit Unions, along with Utah’s Credit Unions and other state leagues and associations, joined the effort by signing on to an amicus brief.
In light of potential changes to the rule, Acting OMB and CFPB Director Russell Vought requested a stay in the lawsuit.
Despite the federal rule being overturned, state-chartered credit unions in California must still comply with a state-level overdraft fee cap. Senate Bill 1075, passed by the California Legislature in 2024, limits overdraft fees to $14 per occurrence. This state cap takes effect on January 1, 2026.
For more context and background, view After Congress Disapproves Overdraft Rule, Trump to Nullify It.
For more information, email Heather Line.
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:
Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
For more information, email Lisa Quaranta.
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