WASHINGTON--A U.S. Court officially dismissed the lawsuit challenging the CFPB’s overdraft rule Friday, a needed legal step after the rule was nullified by passage and signing of the Congressional Review Act into law, America's Credit Unions noted.
America’s Credit Unions and other national trade associations challenged the rule in December 2024, the day the rule capping fees at $5 was finalized. Eighteen leagues joined together in filing an amicus brief in support of the case.
The organizations outlined concerns that the rule would harm consumers by removing a regulated service that consumers must choose to use from the marketplace. It was the first case where America’s Credit Unions used its legal advocacy fund, ACU noted.
The fund was created to ensure America’s Credit Unions is using resources to address credit union issues on all fronts – including legislative, regulatory, and legal, ACU said.
The motion to dismiss the lawsuit was filed after President Donald Trump signed the resolution earlier this month. Noting the matter is now moot with the rule voided, the U.S. District Court of the Southern District of Mississippi granted the motion to dismiss, ACU noted.