FOR IMMEDIATE RELEASE
July 28, 2022
William Pierre-Louis, Jr.
AFR Applauds Overdraft Protection Act’s Passage in the House Financial Services Committee
Washington, D.C. — Americans for Financial Reform applauds the House Financial Services Committee’s passage of Rep. Maloney’s long-standing bill, the Overdraft Protection Act, which passed by a vote of 27-22.
The bill, which was drafted by the Congresswoman more than 10 years ago, is an important step in bringing an end to excessive overdraft fees for consumers, especially those in financially vulnerable communities and for Black and Latinx account holders who have been found to disproportionately bear these fees.
It protects consumers from harmful overdraft practices and the high fees that bear no relationship to the cost incurred by financial institutions to cover them. These fees can be nearly impossible for families living paycheck to paycheck to avoid.
“This is a step in the right direction, in particular for those who have historically been unable to build and maintain wealth in this country,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform. “It restores hope that a consumer’s bank may still provide the protection that opting into overdraft provides, while not being siphoned of funds they don’t have to spare.”
Today was an important first step. AFR calls on the House and Senate to pass this bill, so that Americans can finally stop paying unnecessary and unfair overdraft fees.