The Pennsylvania State Capitol Building, in downtown Harrisburg, Pennsylvania.
A coalition of Pennsylvania’s leading financial associations pushed back against proposed legislation they said would hurt consumers by limiting access to overdraft protection services.
House Bill 1553, recently advanced by the state House Commerce Committee, aims to impose strict new requirements on overdraft programs. The Pennsylvania Bankers Association, the Pennsylvania Association of Community Bankers and the CrossState Credit Union Association jointly opposes the measure, arguing it would restrict consumer choice and drive users toward riskier alternatives.
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“Pennsylvania consumers deserve access to financial tools that help them manage life’s unexpected challenges — not legislation that will drive them toward riskier, unregulated alternatives,” the coalition said in a joint statement.
Overdraft protection, they emphasized, is an opt-in, voluntary service used by millions of residents to cover unforeseen expenses. The bill’s mandates, however, could make offering such services financially unfeasible for many institutions.
The groups also raised concerns about regulatory imbalance. Federally chartered institutions would be largely exempt from HB 1553 due to federal preemption, leaving state-chartered banks and credit unions to bear the costs. As a result, some institutions may consider switching to federal charters, weakening state oversight.
“This bill moves Pennsylvania in the wrong direction,” the coalition stated. “A better solution is greater financial literacy and consumer empowerment, not restricting safe and regulated services that help working families manage their finances.”
The coalition urged lawmakers to vote down HB 1553 and pursue policies that expand, not restrict, consumer financial options.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
