WASHINGTON (Michigan News Source) – The U.S. House and Senate have voted to overturn a rule that limited bank overdraft fees at $5 and the resolution now goes to President Donald Trump for him to sign into law.

The rule implemented last year by the Consumer Financial Protection Bureau limited financial institutions with $10 billion or more in assets to cap overdraft fees to $5 or the bank’s costs.

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The National Consumer Law Center reported that Chase and Wells Fargo banks each took in $1 billion in overdraft fees in 2024. PNC made $250 million in overdraft fees in 2024.

The Republicans introduced the legislation in February and U.S. Rep. Bill Huizenga of Michigan joined the resolution. The Independent Community Bankers of America said that forcing banks to charge $5 for an overdraft would have led to banks no longer offering overdraft projection and banks and customers would “experience the harsh realities of rejected payments.”

The GOP resolution stated, “The reality is that overdraft products allow millions of Americans each year to meet their short-term financial needs rather than being denied a purchase at the register.”

Michigan Attorney General Dana Nessel had joined 22 attorneys general in opposing the resolution. Nessel’s press release said banks made $5.8 billion a year in overdraft fees and that the annual percentage interest rates on overdraft fees were equivalent to 16,000%.