Washington, D.C. (March 3, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the House Financial Services Committee (HFSC) expressing its strong support for H.J. Res. 59, a resolution aimed at overturning the Consumer Financial Protection Bureau’s (CFPB) overreaching rule on overdraft fees.
DCUC’s letter highlights serious concerns regarding this regulatory overreach and the detrimental impact it will have on military families and the credit unions that serve them.
The CFPB’s proposed rule on overdraft fees represents a misguided, one-size-fits-all regulatory approach that DCUC stressed fails to acknowledge the unique role of credit unions and the financial challenges faced by military families. DCUC shared how overdraft protection is a critical financial tool, preventing declined transactions, missed payments, and reliance on predatory payday loans—issues that disproportionately affect military personnel due to deployments, frequent relocations, and irregular pay schedules.
Credit unions as member-owned, not-for-profit institutions already provide overdraft services in a transparent and consumer-friendly manner. Through clear disclosures, reasonable fees, and financial counseling services, credit unions aim to ensure members make informed financial decisions. DCUC noted how the CFPB’s rule unfairly equates credit unions with large banks, disregarding their mission and structure.
DCUC Chief Advocacy Officer, Jason Stverak, shared how this rule is part of a broader pattern of regulatory overreach by the CFPB, which continues to impose burdensome mandates on small, community-focused financial institutions without fully considering the consequences. If implemented, the rule will increase operational costs for credit unions, ultimately affecting their members. Many credit unions may be forced to reduce or eliminate overdraft protection programs, leaving military families with fewer financial options when they need them most.
DCUC strongly supports H.J. Res. 59, which upholds consumer choice and ensures that financial institutions can continue offering responsible overdraft protection services. “H.J. Res. 59 rightfully recognizes the importance of preserving financial access for service members, veterans, and their families,” says Stverak. “We will continue to urge Congress to pass this resolution and prevent unnecessary regulatory burdens that disproportionately harm military families and the credit unions dedicated to serving them.”
DCUC remains committed to working with policymakers to promote a fair regulatory environment that protects financial access for those who serve our country.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy