Statement: U.S. PIRG helps reintroduce Rep. Maloney’s Overdraft Protection Act

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Bill would limit overdraft fees to one per month, six per year

WASHINGTON — Rep. Carolyn Maloney (NY-12) hosted a press conference with U.S. PIRG and other consumer advocacy organizations on Wednesday to reintroduce the Overdraft Protection Act. The bill would provide stronger protections against hefty fees for consumers who exceed the available balance in their bank account. The Overdraft Protection Act would limit financial institutions to charging a maximum of one overdraft fee per month and six per year, among other reforms.

Mike Litt, U.S. PIRG’s consumer campaign director, issued the following statement:

“Even after public outcry over the years, big banks have made it common practice to charge about $35 for overdraft fees, sometimes three to six times a day. That can add up to more than $200 in just one day. Financial institutions continue to rake in tens of billions of dollars a year from these overly punitive fees, which mostly penalize customers with the least money to lose. The Overdraft Protection Act would provide consumers needed relief from these unfair charges.

“It’s been more than ten years since Congresswoman Maloney first introduced this bill. Now, U.S. PIRG is calling on the rest of Congress to sign on. This bill will help Americans in every district across the country and consumers simply can’t afford to wait any longer.”