Bill aims to crack down on unfair bank overdraft feesOverdraft fees currently cost consumers an egregious $15 billion per year, according to the Consumer Financial Protection Bureau. The Overdraft Protection Act of 2019 (HR 4254), introduced by Congresswoman Carolyn B. Maloney (D-NY), aims to crack down on unfair overdraft fees and would establish fair and transparent practices for overdraft coverage programs.
The Overdraft Protection Act of 2019 would add significant consumer protections and useful new disclosures to the Federal Reserve’s 2010 Overdraft Rules. Codifying the existing rules and requiring a raft of new guardrails gives checking account customers new opportunities to select an overdraft program that works for them. The bill also requires that banks inform consumers about any alternative savings- and credit-based overdraft services that might save them money when their account has insufficient funds.
“Unfair, deceptive, and costly overdraft fees hit those who can afford them the least the hardest; cash-strapped hardworking Americans and college students who are struggling to pay their bills,” said Rep. Maloney. “Even one overdraft penalty can quickly trigger hundreds of dollars in fees and drive customers into a financial hole. These fees take advantage of people who are new to the financial system, have limited financial literacy, or are in a situation that an overdraft is the only option. We need to change the status quo and put the $15 billion consumers are spending on overdraft fees back where it belongs—in Americans’ pockets. No cup of coffee or Netflix subscription should cost $36.”
Take action today! Tell your legislator that you are sick and tired of excessive overdraft fees draining your account! Tell your representative to support HR 4254.