WASHINGTON (9/21/09)--Senate Banking Committee Chairman Chris Dodd as early as this week could introduce a bill that would require financial institutions to seek permission before they can enroll their accountholders in an overdraft protection program.
Sen. Charles Schumer (D-N.Y.) himself recently came out in favor of increased consumer protections related to overdraft protection plans, saying that he would support legislation that targets abusive overdraft practices. Schumer is expected to co-sponsor Dodd's legislation once it is introduced.
Speaking at Albany, New York's College of Saint Rose earlier this month, Schumer said that any pending overdraft legislation should require consumers to be given a chance to opt in or out of overdraft protection programs and increase the disclosure of fees and APR charges on overdraft loans.
New York Democratic Rep. Carolyn Maloney has introduced House legislation, H.R. 1456, the Consumer Overdraft Protection Fair Practices Act, that would treat many of the same issues listed by Schumer.
CUNA representatives have spoken with Senate Banking Committee members and staffers in an effort to "educate them about how and why credit unions offer this service to their members, the features of the various programs and our concerns regarding the legislation that has been introduced in the House," CUNA Vice President of Legislative Affairs Ryan Donovan said.
Courtesy of cuna.org