Congressional Action on Overdraft Changes Heats Up 

A second bill to regulate financial institutions' overdraft practices was scheduled to be introduced to the U.S. Senate the week of July 22 by Sen. Sherrod Brown, D–Ohio. Action on overdraft practices has increased since the CFPB released its study of overdraft programs which found that “overdraft programs can be costly for the consumers who use them, and that both consumer outcomes and policies related to overdraft programs can vary considerably.”

The first bill, H.R. 1261, was introduced by U.S. Rep. Carolyn Maloney, D-N.Y.,  H.R. 1261 would:

Brown’s bill which is still being finalized, would:

This congressional activity could seriously impact overdraft programs offered by credit unions throughout the country. The MCUL will continue to monitor these bills and will communicate further information to credit unions once available.

Submissions to Monitor may be emailed. Bryan Laviolette is the editor of Monitor. Contact him by email or call (800) 262-6285, ext. 233. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. The MCUL reserves the right to edit submissions for clarity and space.
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