House committee to consider bill tightening overdraft regulation

by David Baumann, CUCollaborate

The House Financial Services Committee on Tuesday will mark up legislation that would place limits on credit union and bank overdraft programs and expand the disclosures that consumers must receive about the programs.

“Beginning in the 1980s, non-interest revenue, such as fees associated with customer accounts, started to grow and has since become a sizable portion of overall revenue for financial institutions,” committee Democratic staff wrote in a memo outlining the need for the bill, H.R. 4277.

The committee is scheduled to mark up 12 bills starting Tuesday, including the overdraft bill introduced by Rep. Carolyn Maloney, D-N.Y.

Credit union trade groups have opposed legislation that would place limits on overdraft programs.

 

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