{"id":6625,"date":"2025-02-22T20:16:34","date_gmt":"2025-02-22T20:16:34","guid":{"rendered":"https:\/\/africanamericanvoice.net\/?p=6625"},"modified":"2025-02-22T20:16:34","modified_gmt":"2025-02-22T20:16:34","slug":"banks-cash-in-as-republicans-move-to-kill-consumer-protections","status":"publish","type":"post","link":"https:\/\/africanamericanvoice.net\/?p=6625","title":{"rendered":"Banks Cash In as Republicans Move to Kill Consumer Protections"},"content":{"rendered":"

by\u00a0Stacy M. Brown<\/a><\/span><\/p>\n

The Biden administration\u2019s effort to rein in excessive overdraft fees is now under direct attack from congressional Republicans, who have launched a campaign to repeal the Consumer Financial Protection Bureau (CFPB) rule that would cap overdraft charges at $5.<\/p>\n

The move comes as the banking industry \u2014 one of Washington\u2019s most powerful lobbying forces \u2014 pushes to preserve the estimated $8 billion in annual revenue it collects from these fees.<\/p>\n

Republicans introduced a Congressional Review Act (CRA) resolution of disapproval last week, a legislative maneuver that cannot be filibustered and, if passed and signed into law, would wipe out the CFPB rule. The rule, finalized in December, was designed to prevent banks from exploiting consumers through excessive fees, a practice the agency found to be rife with deceptive tactics, including manipulating transaction orders to maximize overdraft charges.<\/p>\n

\u201cRepublicans have introduced legislation to increase your bank fees,\u201d former Transportation Secretary Pete Buttigieg wrote on X. \u201cSeriously, they are doing this. And it sounds like the Trump administration supports it.\u201d<\/p>\n

The American Prospect reported<\/a>\u00a0that Republicans in Congress have clarified who will gain from eliminating the rule.<\/p>\n

\u201cThe CRA has the support of key stakeholders, including the Consumer Bankers Association, Independent Community Bankers of America, American Bankers Association, and America\u2019s Credit Unions,\u201d Emma Janssen wrote for The American Prospect.<\/p>\n

These organizations are deeply entrenched in the banking industry, advocating for financial institutions rather than consumers\u2014the Consumer Bankers Association lobbies on behalf of banks with more than $10 billion in assets. The Independent Community Bankers of America represents 5,000 smaller banks nationwide. The American Bankers Association, one of the largest lobbying groups in the country, has made preserving overdraft fees a key legislative priority. America\u2019s Credit Unions, which claims to represent credit unions, has also sided with the banks in opposing the CFPB rule.<\/p>\n

\u201cIt is extremely telling that the main stakeholders who want to get rid of the CFPB rule are bankers rather than regular Americans who use banks,\u201d Janssen noted.<\/p>\n