While I am glad to see that some banks have taken some initiative by eliminating these fees or moving in that direction, it’s concerning to me that it’s taken this long; it’s piecemeal, and many banks still have yet to make any voluntary changes. I think there should be a uniform standard, that’s why I have introduced the Overdraft Protection Act, which would crack down on predatory overdraft fees and would establish fair and transparent practices for overdraft coverage programs. This legislation passed out of this Committee in July and as I said builds on the Credit Card Bill of Rights.
She then asked Mr.
You can watch the Congresswoman’s full exchange here (https://youtu.be/lOjBqF7bGXA).
* Require that fees be “reasonable and proportional” to the cost of processing these transactions and the amount of the overdraft;
* Prevent institutions from re-ordering transactions to artificially increase their fees;
* Limit the number of fees they can charge to 1 per month and 6 per year;
* Empower consumers by requiring that they proactively opt-in to overdraft programs in the first place – rather than automatically being enrolled;
* Improve transparency and disclosures; and
* Prohibit charging overdraft fees for “debit holds” that exceed actual transaction amounts, among other strong measures.
The Overdraft Protection Act builds on the progress made under
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