Zach Nunn: …While Voting Twice To Jack Up Credit Card Fees
April 2025: Nunn Voted To Let Credit Card Companies Jack Up Late Fees By As Much As Six Times On Consumers
April 2025: Nunn Voted For S.J. Res. 18, A Resolution To Disapprove Of A Consumer Financial Protection Bureau (CFPB) Rule Regarding Overdraft Lending That Was Signed Into Law
April 2025: Nunn Voted For S.J. Res.18, Which Disapproved Of A CFPB Rule Related To “Overdraft Lending: Very Large Financial Institutions.” On April 9, 2025, Zach Nunn voted for: “Passage of the joint resolution that would provide for congressional disapproval of, and nullify, a December 2024 Consumer Financial Protection Bureau rule which regulates overdraft protection services offered by very large financial institutions, including by capping the fees that covered institutions may charge for the service.” The resolution passed by a vote of 217 to 211. [S.J.Res.18, Vote 96, 4/9/25; CQ, 4/9/25]
May 2025: President Trump Signed S.J. Res.18 Into Law. “President Trump has signed a Congressional Review Act (CRA) resolution nullifying the CFPB’s controversial overdraft rule. The rule was issued by the Biden Administration and had attracted opposition from Republicans on Capitol Hill and Trump Administration officials. House and Senate Republicans pushed a CRA resolution through Congress, which Trump has now signed, voiding the rule. If it had been allowed to go into effect as issued, the rule would have limited overdraft fees to $5 at financial institutions with more than $10 billion in assets, unless they set a cap that covered their actual costs or they treated the payment of an overdraft as a loan and gave appropriate disclosures under the Truth in Lending Act and Regulation Z.” [Ballard Spahr LLP, 5/12/25]
S.J. Res.18 Repealed A Consumer Financial Protection Bureau (CFPB) Rule That Required Banks To Cap Overdraft Fees For Credit Card Purchases At $5
S.J. Res.18 Repealed A CFPB Rule That Included A Provision That Would “Cap Overdraft Charges At $5.” “This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau titled Overdraft Lending: Very Large Financial Institutions and published on December 30, 2024. The rule revises provisions regarding charges for insufficient funds in a customer’s bank account (i.e., overdrafts) at very large financial institutions. Under the rule, these institutions must (1) cap overdraft charges at $5; (2) with justification, cap charges at a higher amount; or (3) handle overdrafts as credit and comply with applicable Truth in Lending Act disclosure requirements.” [S.J.Res.18, introduced 2/13/25, became law 5/9/25]
- New York Times: Multiple Federal Officials Said The $5 Cap On Overdraft Charges “Could Help Americans Save Billions In Fees Each Year.” “The Consumer Financial Protection Bureau finalized a rule on Thursday that would limit overdraft charges at large banks and credit unions, a move that federal officials said could help save Americans billions in fees each year. Whether it will remain in place once President-elect Donald J. Trump returns to power is unclear. The rule would cap fees that customers are charged when they spend more money than they have in their bank accounts. Federal officials said large banks would have several options to comply. They could cap their overdraft fees at $5, or set their fees at another amount that covers their costs and losses. Alternatively, they could treat overdrafts as a line of credit and provide similar disclosures, including applicable interest rates.” [New York Times, 12/12/24]
- Bankrate: The Average Overdraft Charge Was “Around $30 For Each Instance.” “While many banks have moved to reduce their overdraft fees, charges still average around $30 for each instance, according to a recent Bankrate survey. The rule would apply to institutions with more than $10 billion in assets, which includes about 150 of the nation’s roughly 9,000 banks and credit unions, and take effect in October.” [New York Times, 12/12/24]
Preventing The Rule From Going Into Effect Would Benefit 150 Of America’s Biggest Banks And Credit Unions “With More Than $10 Billion In Assets”
New York Times: “The Rule Would Apply To Institutions With More Than $10 Billion In Assets,” Which Applied To Only About 150 Of America’s Banks And Credit Unions. “The rule would cap fees that customers are charged when they spend more money than they have in their bank accounts. Federal officials said large banks would have several options to comply. They could cap their overdraft fees at $5, or set their fees at another amount that covers their costs and losses. Alternatively, they could treat overdrafts as a line of credit and provide similar disclosures, including applicable interest rates. While many banks have moved to reduce their overdraft fees, charges still average around $30 for each instance, according to a recent Bankrate survey. The rule would apply to institutions with more than $10 billion in assets, which includes about 150 of the nation’s roughly 9,000 banks and credit unions, and take effect in October.” [New York Times, 12/12/24]
April 2024: In The Financial Services Committee, Nunn Voted For A Resolution That Would Prevent A Consumer Financial Protection Bureau (CFPB) Rule Related To “Credit Card Penalty Fees” From Going Into Effect
April 2024: In The Financial Services Committee, Zach Nunn Voted For H.J. Res. 122, Which Would Prevent A CFPB Rule Related To “Credit Card Penalty Fees” From Going Into Effect
April 2024: Nunn Voted For H.J. Res. 122, Which Would Prevent A CFPB Rule Related To “Credit Card Penalty Fees” From Going Into Effect. On April 17, 2024, Zach Nunn voted in the Financial Services Committee for: “Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves the rule submitted by the Bureau of Consumer Financial Protection relating to ‘Credit Card Penalty Fees (Regulation Z)’ (89 Fed. Reg. 19128; 6 published March 15, 2024), and such rule shall have no 7 force or effect.” The resolution was agreed to by a vote of 28 to 22. [U.S. House Committee on Financial Services, Markup of Various Measures, H.J. Res. 122; Voted 4/17/24]
If The Resolution Became Law, Big Banks Would Stand To Gain $11 Billion In Profits From Charging Consumers $24 More Per Late Fee On Their Credit Cards
Bloomberg: H.J. Res. 122 Would Block The Consumer Financial Protection Bureau’s Rule Capping Credit Card Late Fees. “Lawmakers advanced legislation to block the Consumer Financial Protection Bureau’s rule capping credit card late fees at $8, setting up a vote in the US House of Representatives. The House Financial Services Committee voted 28-22 along party lines Wednesday to approve a measure (H. J. Res. 122) from Rep. Andy Barr (R-Ky.) that would repeal the CFPB’s rule under the Congressional Review Act and bar the agency from introducing a similar proposal.” [Bloomberg, 4/17/24]
- Credit Card Issuers Were Able To Charge Up To $32 For Late Fees Before The CFPB’s $8 Cap Was Instituted. “Currently, banks can charge $30 for a first missed payment and $41 for each additional missed payment for the subsequent six months while being immune to lawsuits for excessive fees under rules finalized by the Federal Reserve in 2010, the CFPB said. Only credit card issuers with more than 1 million open accounts, such as JPMorgan Chase & Co., Capital One Financial Corp., and Bank of America Corp., are subject to the CFPB’s rule. The rule also eliminates an automatic annual inflation adjustment for credit card late fees. Major credit card issuers were able to charge $32 on average for late fees in 2022, up from $23 in 2010, partly as a result of the yearly increases, according to the CFPB.” [Bloomberg, 4/17/24]
Bloomberg: If The Resolution Became Law, Big Banks Stood To Lose $11 Billion In Credit Card Late Fees. “The CFPB estimates that around 45 million Americans are charged credit card late fees each year, and that the rule will save them up to $220 per year. On the flip side, banks stand to lose about $11 billion of the $14 billion in credit card late fees they generate annually, according to Bloomberg Intelligence.” [Bloomberg, 4/17/24]
- Bloomberg: “Only Credit Card Issuers With More Than 1 Million Open Accounts, Such As JPMorgan Chase & Co., Capital One Financial Corp., And Bank Of America Corp., Are Subject To The CFPB’s Rule.” “Currently, banks can charge $30 for a first missed payment and $41 for each additional missed payment for the subsequent six months while being immune to lawsuits for excessive fees under rules finalized by the Federal Reserve in 2010, the CFPB said. Only credit card issuers with more than 1 million open accounts, such as JPMorgan Chase & Co., Capital One Financial Corp., and Bank of America Corp., are subject to the CFPB’s rule. The rule also eliminates an automatic annual inflation adjustment for credit card late fees.
Major credit card issuers were able to charge $32 on average for late fees in 2022, up from $23 in 2010, partly as a result of the yearly increases, according to the CFPB.” [Bloomberg, 4/17/24]