WASHINGTON, D.C.- June 30th, 2021 Congresswoman Carolyn B. Maloney has partnered with a consumer rights group to push introduce the Overdraft Protection Act of 2021.
Overdraft fees are largely unregulated by any government agency. The author of the Credit CARD Act, Maloney hopes the bill will crack down on predatory overdraft policies. Stating:
“Overdraft fees are predatory and hit hardest those who can least afford them — cash-strapped hardworking Americans and college students who are struggling to pay their bills, keep a roof over their heads, and food on the table,”
According to the representatives website the Overdraft Protection Act of 2021 would:
- require that overdraft fees are “reasonable and proportional”,
- limit the number of overdraft fees banks can charge to 1 per month,
- Limit the number of overdraft fees banks can charge to 6 per year,
- improve transparency and disclosures,
- and limit the size of an overdraft fee to the cost of the transaction.
In 2020, larger banks collected $8.8 billion in overdraft fees alone. The bill aims to save consumers as much as $12 billion annually.