Republicans seek to roll back overdraft fee cap and payment app regulations

Republicans in Congress are working to eliminate two consumer protection rules from the Biden administration. They aim to remove a $5 cap on bank overdraft fees and reduce oversight on digital payment apps like Venmo and Apple Pay. These rules, finalized by the Consumer Financial Protection Bureau, have not yet been implemented. Lawmakers plan to use the Congressional Review Act to reverse them, which would prevent similar regulations from being reinstated in the future. The CFPB estimated that the overdraft fee cap could save consumers about $5 billion annually. Currently, average overdraft fees are around $27, but some banks have started to lower or eliminate these charges.