Sending Office: Honorable Carolyn B. Maloney
Sent By:

        Request for Cosponsor(s)

Be an Original Cosponsor of the Overdraft Protection Act of 2019

Protect consumers from deceptive overdraft practices

Dear Colleague,

The Consumer Financial Protection Bureau has published two reports on overdraft fees charged by financial institutions, and the results unfortunately confirm that overdraft fees are still far too high, and are still eating into consumers’ savings.

Significantly, the Bureau’s most recent overdraft study found that most overdraft fees are incurred on purchases of just $24 or less, and are paid back within 3 days — and yet the median overdraft fee for these small overdrafts is still $34. In other words,
consumers were borrowing $24 for 3 days, and paying a 17,000 percent annual percentage rate (APR). This is effectively a tax on the savings of cash-strapped consumers.

While some progress has been made in protecting consumers from unfair and abusive overdraft fees, there is still a long way to go, and significant problems remain.

That is why I plan to re-introduce the Overdraft Protection Act, which will crack down on abusive and deceptive overdraft fees. Under my bill, financial institutions will no longer be able to charge outrageously high overdraft and non-sufficient funds (NSF)
fees; manipulate the order in which a consumer’s transactions post to their account in order to maximize the number of fees; or charge an endless number of overdraft fees to the most vulnerable.

Specifically, my bill:

  • Requires overdraft fees to be reasonable and proportional;
  • Prohibits institutions from manipulating the order of transactions to maximize overdraft fees;
  • Limits overdrafts to one per month and six per year;
  • Codifies the opt-in provisions that the Federal Reserve promulgated in 2009, which require that consumers opt-in to overdraft coverage; and
  • Adds additional disclosures to consumers about overdraft coverage programs.

The bill does not impact retailers, who were hit hard by the latest recession. Consumers deserve extensive disclosures relating to the overdraft fees they are paying; they deserve reasonable and measured fees; and they deserve a level playing field.

If you have any questions or if you would like to be an original cosponsor of this legislation please contact Nicole Bartnik-Vella on my staff at or (202) 225-7944.




Member of Congress

Related Legislative Issues

Selected legislative information: Consumer Affairs, Finance

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