Consumers could close bank accounts at any time at no chargeregardless of the size of their bank balance and could do it inperson or by phone, according to legislation introduced by Rep.Brad Miller (D-N.C.).

Miller, a member of the House Financial Services Committee, saidthe measure is needed because of the fees that some of the largerbanks are charging. Bank of America recently announced it wouldcharge customers who use their debit card a $5 a month fee, as a result of the limits on debitinterchange fees that the Federal Reserve mandated at the behest ofCongress.

“As megabanks flirt with menus of new fees, an increasingnumber of Americans will want to switch banks,” Miller said in astatement. “That is the way things work in a competitive, freemarket as unrepentant banks are still trying to rake in vulgarprofits from their customers.”

Miller's bill, which so far has no cosponsors, would prohibitfinancial institutions from levying fees or charges once theyreceived a request to close an account. It also requiresinstitutions to notify consumers of preauthorized and recurringdebits that hit their account for 30 days after a qualified accountis closed. Also, the financial institution must giveconsumers at least 30 days to make a payment for an accountthat is closed with a negative balance before the institution caninitiate any collection activity, or reporting to a thirdparty.

In addition, Miller's bill states that that if an account isclosed with a negative balance that is only caused by overdraft orother fees, the institution may not report the account asdelinquent to ChexSystems or any similar specialty consumerreporting service.

The bill, HR 3077, has been referred to the House FinancialServices Committee.