H.R. 3904 would amend the Truth in Lending Act to establish fair and transparent practices related to the marketing and provision of overdraft coverage programs at depository institutions.
Detailed Summary
Overdraft Protection Act of 2009 - Amends the Truth in Lending Act to prohibit a depository institution from engaging in unfair or deceptive acts or practices in connection with overdraft coverage, or in acts designed to evade the provisions of this Act.
Requires each depository institution that provides overdraft coverage for transaction accounts to clearly and conspicuously disclose overdraft coverage fees.
Subjects overdraft coverage fees to the consumer's written, electronic, or other consent.
Requires a depository institution to provide specified consumer disclosures regarding its overdraft protection program, including: (1) periodic statements for any transaction account that has an overdraft coverage program feature; and (2) prompt notification of the account's overdraft status.
Prescribes overdraft coverage fee limits.
Prohibits an overdraft coverage fee if the overdraft results solely from a debit hold amount that exceeds the actual dollar amount of the transaction.
Requires a depository institution to provide consumers who have not consented to participate in an overdraft coverage program transaction accounts with the same terms as those provided to consumers who have consented to participate in such program.
Prohibits a depository institution from charging a non-sufficient fund fee for any transaction at an automated teller machine, or a debit card transaction.
Prohibits a depository institution from reporting negative information regarding consumer use of overdraft coverage to any consumer reporting agency when the overdraft amounts and coverage fees are paid under the terms of an overdraft coverage program.
Status of the Legislation
Latest Major Action: 10/22/2009: Referred to House committee. Status: Referred to the House Committee on Financial Services.
Points in Favor
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Points Against
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Visitor Comments
YyYo
December 16, 2009, 3:50pm (report abuse)This is not about consumers inability to balance their account. Banks are not the victim here. This is about the fees charged by banks because they feed on consumers ignorance. Banks would rather that consumers are not educated about fee structures. Otherwise banks wouldnt have been able to collect $24 billion in 2008. Do the fees charged only cover the cost of operations? Dont be ignorant. Banks have shareholders interests to look out for. Not the consumer. Consumers should still beware even if this act passes. Im sure Big Whigs at big banks are already trying to figure out a way to subvert this act if it passes. This act will also affect credit unions however credit unions are member-owned. This means that there are no CEOs that must have their pockets filled and no stockholders to pander to. Hopefully this will help people to open their own eyes to the deception and move all their money and business to a credit union. The passing of this act is only a band-aid. Join a credit union!
Jocelyn Gallant
February 4, 2010, 6:24pm (report abuse)It’s about time this legislation got pass protract customers for having to pay overdraft fees it should have pass a long time ago. Enough-is-enough on overdraft fees. Recent years the bank has gotten too greedy. Especially those who have lose their jobs thought economic hardships. When families are struggling to put food on the table too feed their families and keeping wolf over they heads.
Is not the persons fault when he or she has been laid off from his or her position? This has to come to end. I am very please this legislation finely got pass now customers can brave relief and speedy peaceful.
The banks should help customers not hurt them.
Salem, New Hampshire