WASHINGTON (7/22/13, UPDATED 1:30 p.m. ET)--Legislation that aims to prevent financial institutions from reordering account deposits and withdrawals to maximize the amount of overdraft fees that may be charged to accountholders was announced by Sen. Sherrod Brown (D-Ohio) today.
The senator outlined the bill, which has not been introduced in the Senate, at a press conference in Cleveland. "Banks should play by the rules instead of purposefully 'reordering' their customers' debit card transactions so that they profit while consumers rack up costly penalties," he said.
Brown's bill, which is still being finalized, would also:
Give the Consumer Financial Protection Bureau authority to monitor banks overdraft practices;
Allow that agency to establish fair guidelines to protect consumers, as well as credit unions and banks that treat members and customers well; and
Ensure that financial institutions clearly post transactions in an easy to understand format.
Under the bill, the CFPB would also offer safe harbor to financial institutions that follow any new CFPB overdraft guidelines.
For the full release, use the link.