,,ii #aacth ,,congress #ast ,session ,s4 #aecd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ai1 #bjac ,mr4 ,harkin introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide a framework establishing the rights1 liabilities1 and responsibilities of participants in closing procedures for certain types of consumer deposit accounts1 to protect individual consumer rights1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,freedom and ,mobility in ,consumer ,banking ,act4 #b4 ,consumer ,rights with ,respect to ,closed ,accounts ,the ,truth in ,savings ,act 7#ab ,u4,s4,c4 #dcja et seq47 is amended-- 7#a7 by striking section #bfb and inserting the following3 #bfb4 ,findings and ,purposes 7a7 ,findings ,congress finds that-- 7#a7 economic stability would be enhanced1 competition between depository institutions would be improved1 and the ability of the consumer to make informed decisions regarding deposit accounts1 and to verify accounts1 would be strengthened if there were uniformity in the disclosure of terms and conditions on which interest is paid and fees are assessed in connection with such accounts2 and 7#b7 consumers lack meaningful choices for managing household funds because-- 7,a7 despite dissatisfaction with rising account fees at some depository institutions1 consumers often find it too difficult to move their funds to new deposit accounts2 7,b7 the process of moving funds to new deposit accounts often involves several steps and substantial time to complete1 and it is not always clear what the proper procedures are for closing an account at a given depository institution2 7,c7 depository institutions have no obligation and may lack the technical capabilities to help consumers transfer automated deposits or debits from old accounts to new accounts1 causing delays and confusion2 7,d7 depository institutions may charge fees to close an account and withdraw available funds1 which can impede banking mobility for low-income consumers2 and 7,e7 some depository institutions have engaged in the practice of reopening closed accounts without the consent of the consumer4 7b7 ,purposes ,the purposes of this ,act are-- 7#a7 to allow consumers to make a meaningful comparison between competing claims of depository institutions with regard to deposit accounts by requiring the clear and uniform disclosure of-- 7,a7 the rates of interest that are payable on deposit accounts by depository institutions2 and 7,b7 the fees that are assessable against deposit accounts2 and 7#b7 to protect rights of consumers by providing a framework establishing the rights1 liabilities1 and responsibilities of depository institutions and consumers in closing procedures for certain types of consumer deposit accounts4 2 7#b7 by inserting after section #bfh the following3 #bfh;,a4 ,closure of ,covered ,accounts 7a7 ,in general ,a depository institution may not-- 7#a7 prohibit a consumer from closing a covered account at the depository institution1 regardless of whether the balance in the covered account is positive1 zero1 or negative2 7#b7 charge any fee to close a covered account2 or 7#c7 reopen a covered account that a consumer has requested to be closed in accordance with this section to apply subsequent debits1 whether preauthorized or otherwise1 or for any other reason1 unless the consumer expressly requests that the covered account be reopened4 7b7 ,disclosures required ,a depository institution shall provide to any consumer that opens a covered account at the depository institution a description of the policies and procedures that the depository institution has in place to close a covered account-- 7#a7 at the time the consumer opens the covered account2 7#b7 at any time1 upon request of a consumer2 and 7#c7 on the website of the depository institution4 7c7 ,regulations relating to closure of covered accounts 7#a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,bureau1 after consultation with each agency referred to in section #bgj7;a71 and public notice and opportunity for comment1 shall prescribe final regulations to carry out this section4 7#b7 ,content ,the regulations required by this subsection shall-- 7,a7 require that a depository institution close a covered account not later than #e business days after the date on which a consumer makes a request to close the covered account1 except that the closure of the covered account may be delayed-- 7i7 if a ,federal or ,state law enforcement agency notifies the depository institution that the closure will interfere with a criminal investigation2 or 7ii7 pursuant to any other exception that the ,bureau determines is appropriate2 7,b7 prescribe the methods by which a consumer may make a request to a depository institution to close a covered account1 which1 except as provided in subparagraph 7,c71 shall include requests made in person1 over the phone1 or by other electronic or remote means2 7,c7 allow a depository institution to require that a request by a consumer to close a covered account shall be made in person if the covered account contains an amount on deposit exceeding a certain monetary threshold1 as determined and established by the ,bureau2 7,d7 establish procedures that require a depository institution to positively verify the identity of a consumer requesting to close a covered account before the depository institution closes the covered account1 including procedures for a depository institution to follow if the depository institution is unable to verify the identity of the consumer2 7,e7 establish procedures for a depository institution to provide a consumer with the funds contained in a covered account that the consumer has requested to close1 which shall include procedures-- 7i7 that ensure that the consumer whose identity has been positively verified by the depository institution has access to any funds available for withdrawal at the time the consumer makes a request to the depository institution to close the covered account2 7ii7 that establish a reasonable amount of time for the depository institution to remit to the consumer the remainder of any funds in the closed covered account1 including funds that are subject to a dispute between the depository institution and the consumer2 and 7iii7 that allow a consumer whose identity has been positively verified by the depository institution to receive available funds from a covered account that the consumer has requested to close in the form of-- 7,i7 a cashier's check provided to the consumer2 7,,ii7 an electronic funds transfer to an account designated by the consumer2 7,,iii7 any means offered by the depository institution that the consumer has requested2 or 7,,iv7 any means that the ,bureau determines appropriate2 7,f7 except as provided under subparagraph 7,g71 prohibit a depository institution from imposing any fee or charge on a covered account at the depository institution after the consumer has requested to close the covered account2 7,g7 allow a depository institution to assess an overdraft fee after a consumer has requested to close a covered account1 if such overdraft fee is associated with a transaction that was initiated by the consumer before the date on which the consumer made a request to the depository institution to close the covered account2 7,h7 not limit the ability of a consumer to earn interest that a covered account had accrued before the date on which the consumer made a request to the depository institution to close the covered account2 7,i7 establish procedures for a depository institution and a consumer to follow if a personal check written by the consumer is deposited by a person other than the consumer after the date on which the consumer has closed a covered account2 7,j7 require the depository institution to provide the consumer with certain information before the depository institution closes a covered account of the consumer1 including-- 7i7 a list of any preauthorized transactions relating to the covered account that occurred within the #fj days preceding the date on which the consumer made a request to the depository institution to close the covered account2 7ii7 a list of any preauthorized transactions scheduled to occur in the #fj days after the date on which the consumer made a request to the depository institution to close the covered account2 7iii7 a list of any direct deposits into the covered account in the #fj days preceding the date on which the consumer made a request to the depository institution to close the covered account2 and 7iv7 any other information that the ,bureau determines is necessary to provide consumers with adequate information about potential preauthorized activity relating to the covered account2 7,k7 prohibit a depository institution from reporting an outstanding balance or any other adverse information with respect to a covered account at the depository institution to any consumer reporting agency1 as defined in section #fjc7;f7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a71 if-- 7i7 at the time the covered account is closed1 the covered account has a negative balance resulting solely from any fee assessed by the depository institution2 and 7ii7 that information could be used to adversely affect the ability of the consumer to open an account at another depository institution2 7,l7 establish the terms under which a depository institution may report that a covered account had a negative balance at the time of the closure of the covered account to a consumer reporting agency1 as defined in section #fjc7;f7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a71 if the depository institution-- 7i7 notifies the consumer of the negative balance2 and 7ii7 provides the consumer with a reasonable period of time1 as determined and established by the ,bureau1 to repay the negative balance2 and 7,m7 include any other provisions1 guidance1 or exceptions that the ,bureau determines are appropriate in order to facilitate the purposes of this section4 7d7 ,study required 7#a7 ,study 7,a7 ,in general ,the ,comptroller ,general of the ,united ,states shall conduct a study to determine additional barriers that could limit the ability of a consumer to close a covered account4 7,b7 ,contents of study ,the study required under subparagraph 7,a7 shall include1 at a minimum1 analysis of-- 7i7 potential reforms to payment clearing and settlement systems that would enable depository institutions to notify consumers if a preauthorized recurring debit is directed to a covered account after the covered account has been closed2 7ii7 potential reforms to payment clearing and settlement systems that would automatically transfer any direct deposit1 preauthorized transaction1 or other similar scheduled activity relating to a closed covered account to another account designated by the consumer2 7iii7 other factors1 including technological barriers1 in payment clearing and scheduling systems that limit the ability of consumers to efficiently close a covered account and transfer funds to another account2 and 7iv7 recommendations to ,congress and the appropriate ,federal banking agencies1 including steps that the appropriate ,federal banking agencies could take through rulemaking to facilitate the automatic transfer of funds from a closed covered account to another account designated by the consumer4 7,c7 ,report ,not later than #a year after the date of enactment of this subsection1 the ,comptroller ,general shall issue a report to ,congress and the ,bureau on the study required under subparagraph 7,a71 including any findings and determinations made by the ,comptroller ,general in carrying out the study4 7#b7 ,rulemaking ,not later than #a year after the ,bureau receives the report issued under paragraph 7#a77;,c71 the ,bureau shall-- 7,a7 determine whether regulations should be issued to remove barriers that limit the ability of a consumer to close a covered account2 and 7,b7 if the ,bureau determines that such regulations should be issued1 the ,bureau shall1 in consultation with each agency referred to in section #bgj7;a71 and after public notice and opportunity for comment1 issue such regulations4 2 and 7#c7 in section #bgd1 by adding at the end the following3 7#i7 ,available for withdrawal ,the term available for withdrawal1 with respect to funds deposited1 means available for all uses generally permitted to the customer for actually and finally collected funds under the account agreement with the depository institution or policies of the depository institution1 such as for payment of checks drawn on the account1 certification of checks drawn on the account1 electronic payments1 withdrawals by cash1 and transfers between accounts4 7#aj7 ,covered account ,the term covered account means any checking1 savings1 or any other account that the ,bureau may include1 by regulation4 4