Rep. Carolyn Maloney, D-N.Y. (Source: Shutterstock)
A senior Democrat on the House Financial Services Committee is renewing her effort to force financial institutions, including credit unions, to limit the fees they charge people who overdraft their accounts.
Rep. Carolyn Maloney (D-N.Y.) has introduced her "Overdraft Protection Act" during the past several congresses, but the bill did not advanced while Republicans controlled the House.
During a news conference, she said she reintroduced the bill in the House Monday. She said she will be pushing House Financial Services Chairwoman Maxine Waters (D-Calif.) to hold hearings on the measure.
"This bill will protect consumers from unfair, deceptive and costly practices," she said. "This is absolutely predatory."
Maloney's bill would require overdraft fees to be reasonable and proportional, would prohibit financial institutions from manipulating the order of transactions to maximize overdraft charges, limit the number of overdrafts, allow consumers to opt into overdraft protection programs and require additional disclosures to members and customers.
At the news conference, Maloney's legislation was endorsed by consumer advocates, including the Center for Responsive Lending, U.S, PIRG and the Consumer Federation of America.
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