Congress Plans Bill on Overdraft Fees

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WASHINGTON – New York Congresswoman Carolyn Maloney said she will renew efforts to tighten regulations over the growing practice of overdraft protection. Maloney, named chair yesterday of the House Financial Service subcommittee on Financial Institutions, said she will introduce a bill that will require that consumers opt-in to potentially costly overdraft protection plans, rather than be forced into them; that consumers are alerted when they are about to overdraw their accounts at ATMs; and that credit unions and banks provide comprehensive disclosures on their overdraft policies. Maloney cited a new report by the credit union-affiliated Center for Responsible Lending showing that banks are raking in increasing fees from overdraft policies, often without the knowledge or consent of consumers.

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