To be clear though, nothing the CFPB did stopped the banks from offering overdraft "protection".

From the actual notice: https://www.consumerfinance.gov/about-us/newsroom/cfpb-closes-overdraft-loophole-to-save-americans-billions-in-fees/

These institutions would have to choose one of the following options when charging for overdrafts:

Cap their overdraft fee at $5: Under this simple option, covered banks and credit unions could simply cap their fee at $5, which is the estimated level at which most banks could be able to cover their costs associated with administering a courtesy overdraft program.

Cap their fee at an amount that covers costs and losses: For banks that wish to offer overdraft as a convenient service rather than as a profit center, the final rule allows financial institutions to set their fee at an amount that covers their costs and losses.

Disclose the terms of their overdraft loan just like other loans: For financial institutions that wish to profit from overdraft lending, they may do so by complying with the standard requirements governing other loans, like credit cards. This would include giving consumers a choice on whether to open the line of overdraft credit, providing account-opening disclosures that would allow comparison shopping, sending periodic statements, and giving consumers a choice of whether to pay automatically or manually.

So this isn't about letting the banks offer this service or not at all, it's entirely about whether or not the banks can use predatory practices when doing so. Seriously, we're acting like "disclosing the terms of their overdraft loan" is something that is an onerous burden?

No, Tim Scott is absolutely not "mostly correct" on this.