Maloney Introduces Overdraft Protection Act
Representative Carolyn Maloney (D-Manhattan, Brooklyn, Queens), joined consumer protection advocates yesterday to introduce the Overdraft Protection Act of 2019.
The act would crack down on unfair overdraft fees and establish fair and transparent practices for overdraft coverage programs. According to the Consumer Financial Protection Bureau, overdraft fees currently cost consumers an egregious $15 billion per year; Maloney’s bill will reduce this greatly.
“Unfair, deceptive, and costly overdraft fees hit those who can afford them the least the hardest; cash-strapped hardworking Americans and college students who are struggling to pay their bills,” said Maloney. “Even one overdraft penalty can quickly trigger hundreds of dollars in fees and drive customers into a financial hole. These fees take advantage of people who are new to the financial system, have limited financial literacy, or are in a situation that an overdraft is the only option. We need to change the status quo and put the $15 billion consumers are spending on overdraft fees back where it belongs – in Americans’ pockets. No cup of coffee or Netflix subscription should cost $36.”
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