CONSUMER NEWS RECALLS COMPLAINT FORM SCAM ALERTS
Small Claims Guide Class Actions Lemon Laws FAQ Newsletters Spanish

- advertisement -

News & Advice

Compare Rates

Calculators

Rate Alerts | Glossary | Help

Summary of overdraft protection act

By Bankrate.com

The following is a summary of the Consumer Overdraft Protection Fair Practices Act, a bill expected to be reintroduced in Congress this year sponsored by Rep. Carolyn Maloney, D-N.Y., Sen. Bernie Sanders, I-Vt., and Rep. Barney Frank, D-Mass.

- advertisement -

To learn more about the issues the bill is addressing, see the Bankrate feature, "FDIC study: outrageous overdraft fees," and a summary of the FDIC study's results.

The bill:

Prohibits depository institutions from imposing any fee in connection with an overdraft protection program or service unless the consumer has provided specific written consent for the program or service.

Requires written disclosure of all terms and charges related to overdraft protection programs and services, including the amount of any fees charged to cover overdrafts, types of transactions covered, time period in which the consumer must repay an overdraft and the circumstances under which the institution will not pay an overdraft.

Prohibits depository institutions from claiming they will cover all overdrafts on a consumer's account when they reserve the ability to pay overdrafts on a discretionary basis.

Prohibits depository institutions from engaging in any pattern or practice of delaying the posting of deposits or manipulating the posting of any check against an account for the purpose of creating overdrafts that require overdraft protection fees.

Requires ATMs operated by the institution that holds a consumer's account to provide the actual dollar balance of the consumer's account in response to a balance inquiry rather than any higher amount the institution will cover as overdrafts.

Requires ATMs operated by an institution that holds a consumer's account to notify the consumer when a requested transaction may trigger an overdraft protection fee and permit the consumer to cancel the transaction and avoid the fee.

Prohibits advertisements by depository institutions that portray overdraft protection as short-term credit or that claim consumers may maintain negative account balances when consumers are required to promptly repay all overdrafts.

Clarifies that fees charged for the most widely advertised, nontraditional forms of overdraft protection are "credit" for purposes of all relevant consumer disclosures required by the Truth in Lending Act and Regulation Z.

Source: U.S. House of Representatives

Bankrate.com's corrections policy

-- Posted: Jan. 7, 2009

Create a news alert for "savings"

		RESOURCES
		Follow rules to avoid overdrafts
		Overdraft protection plans
		2008 Checking Study

TOP CHECKING & SAVINGS STORIES

		Winners and losers: Certificates of deposit
		Winner or loser: Mortgage shopper
		Winner or loser: Home equity loans

Checking and Savings

Compare today's rates

NATIONAL OVERNIGHT AVERAGES

Interest checking	0.47%
MMA	0.47%
$10K MMA	0.54%


	RELATED CALCULATORS

How long will your savings last

How to reach a savings goal -- with scheduled payments

Watch your savings grow with regular deposits

VIEW ALL

BASICS SERIES

Checking Basics

Manage your account in a fee-friendly way.

Checking account types

ABCs of ATMs

What are all these fees?

Is online banking secure?

How safe is your bank?

- advertisement -

* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here.

Bankrate Privacy Policy


AUTOMOTIVE • Dealers • Manufacturers • Service • Extended Warranties • Lemon Laws • Recalls • Tires • Transporters FAMILY • Aging • Children, Parenting • Recalls • Dating • Education • Entertainment • Pets • Weddings	FINANCE • Annuities • Banks • Credit Cards • Debt Collection • Debt Counseling • Insurance • Investing • Loans • Mortgages • Payday Loans • Student Loans • Tax Prep HEALTH • Drugs, Pharmacies • Health Clubs • Hearing Care • Hospitals • Nursing Homes • Nutrition, Diets • Vision Care • Weight Loss	HOMEOWNERS & RENTERS • Appliances • Cookware • Furniture • Home Improvements • Lawn & Garden • Movers • Pools & Spas • Realtors, Rental Agents • Recalls • Utilities ELECTRONICS • Cable TV/DBS • Cameras • Cell Phones • Computers • Home Electronics • Internet Access • Local Phone Service • Long Distance • VoIP	SHOPPING • In-Home • Online • Retail Stores • Sporting Goods • Supermarkets • Telemarketers TRAVEL • Airlines • Bus Lines • Car Rental • Cruises • Hotels • Travel Agents • Trains RESOURCES • Class Actions • Complaint Form • Small Claims Guide • Lemon Laws	CONSUMER NEWS • Latest News • Automotive • Telecom • Financial • Health • Homeowners • Scams • Seniors • Travel • More ... RECALLS • Automotive • Children's Products • Drugs • Food • Household Products • Sporting Goods ABOUT US • FAQ • Privacy Policy • Advertise With Us • Newsroom • Syndication • Terms of Use

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice. ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof.