HR 946 - Overdraft Fee Bill

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Question:

I heard that Rep. Carolyn Maloney of NY has introduced a bill (HR 946) that would make big changes to overdraft plans and will put significant restrictions on overdraft plans as well. Does anyone know the status of the bill and what it entails?

Answer:

H.R.946

Title: To extend the protections of the Truth in Lending Act to overdraft protection programs and services provided by depository institutions, to require customer consent before a depository institution may initiate overdraft protection services and fees, to enhance the information made available to consumers relating to overdraft protection services and fees, to prohibit systematic manipulation in the posting of checks and other debits to a depository account for the purpose of generating overdraft protection fees, and for other purposes.

Sponsor: Rep Maloney, Carolyn B. [NY-14] (introduced 2/8/2007) Cosponsors (25)

Latest Major Action: 4/12/2007 Referred to House subcommittee. Status: Referred to the Subcommittee on Financial Institutions and Consumer Credit.

IMHO - It was dead on arrival.

First published on BankersOnline.com 12/10/07