Congress
HIGHLIGHT
Unfair bank and credit union overdraft fees have shot well above $20 billion per year. The FAIR Overdraft Coverage Act, S 1799 in the U.S. Senate, and the Overdraft Protection Act of 2009, H.R. 3904 in the U.S. House, would significantly rein in abuses. They would require that banks and credit unions get explicit permission before enrolling their customers in these expensive programs—the least they can do.
They would also require that the size of the fee be related to the cost of the covering the overdraft, and that banks charge no more than one of these average $34 fees per month or six per year. And the outrageous practice of re-ordering customer transactions in a manner that triggers more overdraft fees will be banned.
- Support H.R. 3904, the Overdraft Protection Act of 2009
October 29, 2009Congresswoman Carolyn Maloney proposed the Overdraft Protection Act of 2009, which would reform out-of-control bank and credit union overdraft practices. Fees for debit card transactions and other types of overdrafts have reached well over $20 billion per year.
- Senate bill S 1799 would reform out-of-control overdraft practices
October 23, 2009The Center for Responsible Lending strongly supports the FAIR Overdraft Coverage Act as it would represent a major advance in overdraft reform.
- Quick Facts on Overdraft Loans
April 9, 2009Brief facts about overdraft loans, largely derived from CRL research
- Testimony--Overdraft Protection: Fair Practices for Consumers
July 11, 2007Testimony of Eric Halperin Before the U.S. House Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit.
- Support HR 946
June 1, 2007CRL endorses Rep. Maloney's HR 946 as effective reform of bank overdraft practices.
