WASHINGTON – In the latest example of pressure on banks to rein in overdraft fees, a senior House Democrat has reintroduced legislation to restrict the charges.
Rep. Carolyn Maloney, DN.Y., held a press conference Wednesday to tout the Overdraft Protection Act, which would restrict the number of times banks can collect the fees and is also intended to ensure that charges are reasonable.
“The Overdraft Protection Act will keep money in peoples’ pockets,” Maloney said.
“In order to maximize profits from overdraft fees, some banks are reordering transactions,” Rep. Carolyn Maloney, DN.Y., said at a press conference Wednesday.
Andrew Harrer / Bloomberg
The legislation would prohibit banks from charging a customer more than one overdraft fee per month, and limit the total number per customer to six each year. The bill would also require that any overdraft fees be “reasonable and proportional” to the amount of the overdraft.