,,ii #aafth ,,congress #ast ,session ,s4 #aeie ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bb1 #bjai,mr4 ,booker 7for himself and ,mr4 ,brown7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,truth in ,lending ,act to limit overdraft fees and establish fair and transparent practices related to the marketing and provision of overdraft coverage programs at depository institutions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,overdraft ,profiteering ,act of #bjai4 #b4 ,findings and purpose 7a7 ,findings ,congress finds the following3 7#a7 ,overdraft coverage is a form of short-term credit that depository institutions market for consumer transaction accounts4 ,historically1 depository institutions covered overdrafts for a fee on an ad hoc basis4 7#b7 ,with the growth in specially designed software programs and in consumer use of debit cards1 overdraft coverage for a fee has become more prevalent4 7#c7 ,many depository institutions market a range of overdraft options but aggressively encourage consumers to consent to the most expensive option1 where a high flat fee is collected for every individual overdraft transaction4 7#d7 ,many depository institutions collect a high flat fee1 including for small dollar transactions1 each time the institution covers an overdraft1 impose multiple overdraft coverage fees within a single day1 and charge additional fees for each day during which the account remains overdrawn4 7#e7 ,such abusive practices in connection with overdraft coverage fees have deprived consumers of meaningful options and placed significant financial burdens on low- and moderate-income consumers4 7b7 ,purpose ,it is the purpose of this ,act to protect consumers by limiting abusive overdraft coverage fees and practices and by providing meaningful disclosures and consumer choice in connection with overdraft coverage fees4 #c4 ,definitions ,in this ,act3 7#a7 ,,cfpb ,the term ,,cfpb means the ,bureau of ,consumer ,financial ,protection4 7#b7 ,depository institution2 overdraft2 overdraft coverage fee2 transaction account2 nonsufficient fund fee ,the terms depository institution1 overdraft1 overdraft coverage fee1 transaction account1 and nonsufficient fund fee have the meanings given the terms in #adj;,b7p7 of the ,truth in ,lending ,act1 as added by section #d of this ,act4 #d4 ,fair marketing and provision of overdraft coverage programs 7a7 ,in general ,chapter #b of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afca et seq47 is amended by adding at the end the following3 #adj;,b4 ,overdraft coverage program disclosures and consumer protection 7a7 ,prohibitions ,no depository institution may engage in acts or practices in connection with the marketing of or the provision of overdraft coverage that are designed to evade the provisions of this section4 7b7 ,marketing disclosures ,each depository institution that provides or offers to provide overdraft coverage with respect to transaction accounts held at that depository institution shall clearly and conspicuously disclose in all marketing materials for such overdraft coverage any overdraft coverage fees with respect to such overdraft coverage4 7c7 ,overdraft coverage fees 7#a7 ,in general ,except as provided in paragraph 7#b71 no depository institution may charge an overdraft coverage fee for any transaction-- 7,a7 at an automated teller machine2 or 7,b7 involving a one-time debit card transaction4 7#b7 ,overdraft fees permitted for checks and automatic recurring payments ,a depository institution may charge an overdraft coverage fee for a check or an automatic recurring payment as part of an overdraft coverage program that incorporates the requirements identified in subsections 7d7 through 7l74 7d7 ,consumer consent opt-,in ,a depository institution may charge overdraft coverage fees with respect to the use of checks or automatic recurring payments only if-- 7#a7 the depository institution has waited at least #c days after opening an account to offer the overdraft coverage program2 and 7#b7 the consumer has consented in writing1 in electronic form1 or in such other form as is permitted under regulations of the ,bureau4 7e7 ,consumer disclosures ,each depository institution shall clearly disclose to each consumer covered by an overdraft protection program of that depository institution-- 7#a7 that the consumer may be charged for not more than #a overdraft coverage fee in any single calendar month and not more than #f overdraft coverage fees in any single calendar year1 per transaction account2 7#b7 information about any alternative overdraft products that are available 7such as linked accounts1 lines of credit1 and alerts71 including a clear explanation of how the terms and fees for such alternative services and products differ2 and 7#c7 such other information as the ,bureau may require1 by rule4 7f7 ,periodic statements ,each depository institution that offers an overdraft coverage program shall1 in each periodic statement for any transaction account that has an overdraft coverage program feature1 clearly disclose to the consumer the dollar amount of all overdraft coverage fees and nonsufficient fund fees charged to the consumer for the relevant period and year to date4 7g7 ,exclusion from account balance information ,no depository institution may include the amount available under the overdraft coverage program of a consumer as part of the transaction account balance of that consumer and the transaction account balance shall be more prominently displayed than any amount available under the overdraft coverage program4 7h7 ,prompt notification ,each depository institution shall promptly notify consumers1 through a reasonable means selected by the consumer1 when overdraft coverage has been accessed with respect to the account of the consumer1 not later than on the day on which such access occurs1 including-- 7#a7 the date of the transaction2 7#b7 the type of transaction2 7#c7 the overdraft amount2 7#d7 the overdraft coverage fee2 7#e7 the amount necessary to return the account to a positive balance2 and 7#f7 whether the participation of a consumer in an overdraft coverage program will be terminated if the account is not returned to a positive balance within a given time period4 7i7 ,terminated or suspended coverage ,each depository institution shall provide prompt notice to the consumer1 using a reasonable means selected by the consumer1 if the institution terminates or suspends access to an overdraft coverage program with respect to an account of the consumer1 including a clear rationale for the action4 7j7 ,overdraft coverage restrictions and fee limits for checks and automatic recurring payments 7#a7 ,frequency ,a depository institution may charge not more than #a overdraft coverage fee in any single calendar month1 and not more than #f overdraft coverage fees in any single calendar year1 per transaction account4 7#b7 ,reasonable and proportional overdraft coverage fees 7,a7 ,in general ,the amount of any overdraft coverage fee shall be reasonable and proportional to the cost to the financial institution in providing the overdraft coverage for that transaction1 including the cost to the financial institution of funds and other costs directly associated with the transaction4 7,b7 ,safe harbor rule authorized ,the ,bureau1 in consultation with the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 the ,board of ,directors of the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration ,board1 may issue rules to provide an amount for any overdraft coverage fee that is presumed to be reasonable and proportional to the costs to the financial institution in providing the overdraft coverage for the transaction4 7#c7 ,posting order ,each depository institution shall post transactions with respect to transaction accounts in such a manner that minimizes overdraft coverage fees and nonsufficient fund fees4 7k7 ,debit holds ,no depository institution may charge an overdraft coverage fee on any category of transaction1 if the overdraft results solely from a debit hold amount placed on a transaction account that exceeds the actual dollar amount of the transaction4 7l7 ,nondiscrimination for not opting ,in ,in implementing the requirements of this section1 each depository institution shall provide to consumers who have not consented to participate in an overdraft coverage program transaction accounts having the same terms1 conditions1 or other features as those that are provided to consumers who have consented to participate in such overdraft coverage program1 except for features of such overdraft coverage4 7m7 ,nonsufficient fund fee limits ,no depository institution may charge any nonsufficient fund fee with respect to-- 7#a7 any transaction at an automated teller machine2 or 7#b7 any debit card transaction4 7n7 ,reports to consumer reporting agencies 7#a7 ,in general ,no depository institution may report negative information regarding the use of overdraft coverage by a consumer to any consumer reporting agency1 as defined in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a71 when the amounts of the overdraft are repaid under the terms of an overdraft coverage program4 7#b7 ,deletion ,a depository institution shall request that the consumer reporting agency described in paragraph 7#a7 delete any previously reported negative information1 including closure of an account due to unpaid overdrafts1 if the consumer repays the overdrafts or tenders payment for the overdrafts to the depository institution or its successor4 7o7 ,rule of construction ,no provision of this section may be construed as prohibiting a depository institution from retaining the discretion to pay1 without assessing an overdraft coverage fee or charge1 an overdraft incurred by a consumer4 7p7 ,definitions relating to overdraft coverage ,for purposes of this section3 7#a7 ,check ,the term check-- 7,a7 has the meaning given the term in section #c of the ,check ,clearing for the #bast ,century ,act 7#ab ,u4,s4,c4 #ejjb72 and 7,b7 does not include a traveler's check4 7#b7 ,depository institution ,the term depository institution means any entity described in clauses 7i7 through 7vi7 of section #ai7;b77#a77;,a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77;,a774 7#c7 ,nonsufficient fund fee ,the term nonsufficient fund fee means a fee or charge assessed in connection with an overdraft for which a depository institution declines payment4 7#d7 ,overdraft ,the term overdraft means1 in a withdrawal by check or other debit from a consumer transaction account in which there are insufficient or unavailable funds in the account to cover such check or debit1 the amount of such withdrawal that exceeds the available funds in the account4 7#e7 ,overdraft coverage ,the term overdraft coverage means the payment of a check presented or other debit posted against a consumer transaction account by the depository institution in which such account is held1 even though there are insufficient or unavailable funds in the account to cover such checks or other debits4 7#f7 ,overdraft coverage fee ,the term overdraft coverage fee-- 7,a7 means any fee or charge assessed in connection with overdraft coverage1 or in connection with any negative account balance that results from overdraft coverage2 and 7,b7 does not include-- 7i7 a periodic rate in connection with an extension of credit through an overdraft line of credit program2 and 7ii7 a fee or charge imposed in connection with any transfer from an account linked to another transaction account4 7#g7 ,overdraft coverage program ,the term overdraft coverage program means a service under which a depository institution assesses an overdraft coverage fee for overdraft coverage4 7#h7 ,transaction account ,the term transaction account has the meaning given the term in section #ai7;b77#a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a774 4 7b7 ,technical amendment ,the table of contents for chapter #b of the ,truth in ,lending ,act is amended by inserting after the item relating to section #adj;,a the following3 #adj;,b4 ,overdraft coverage program disclosures and consumer protection4 4 #e4 ,regulatory authority of the ,,cfpb ,not later than #b years after the date of the enactment of this ,act1 the ,,cfpb shall issue such final rules and publish such model forms as necessary to carry out section #adj;,b of the ,truth in ,lending ,act1 as added by section #d of this ,act4 #f4 ,effective date 7a7 ,in general ,this ,act and the amendments made by this ,act shall take effect #a year after the date of the enactment of this ,act1 whether or not the rules of the ,,cfpb under this ,act or such amendments are prescribed in final form4 7b7 ,moratorium on fee increases ,during the #a-year period beginning on the date of the enactment of this ,act1 no depository institution may increase the overdraft coverage fees or charges assessed on transaction accounts for paying a transaction 7including a check or other debit7 in connection with an overdraft or for nonsufficient funds4