According to Rep. Carolyn Maloney (D-N.Y.) and 46 co-sponsoring House Democrats, the Federal Reserve's opt-in rule for courtesy pay didn't go far enough.
Maloney on Thursday introduced the “Overdraft Protection Act”, which would expand opt-in requirements beyond debit card transactions to include paper checks, ATM withdrawals and recurring ACH payments.
The bill would also require disclosure of coverage and fees, both at the time of original opt-in, and again when an overdraft fee is charged, require that overdraft fees be “reasonable and proportional” to the cost of the transaction, cap fees to one per month and six per year, and ban the ordering of transactions to maximize overdrafts.
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