,,ii #aafth ,,congress #b;d ,session ,s4 #ceff ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bb1 #bjbj,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 prohibit depository institutions from assessing overdraft and non-sufficient fund fees during the novel coronavirus crisis and other disasters1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,overdraft ,profiteering during ,,covid-#ai ,emergency ,act of #bjbj4 #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 programs1 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 each individual overdraft transaction4 7#d7 ,many depository institutions-- 7,a7 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 overdrawn2 and 7,b7 charge unreasonable nonsufficient fees4 7#e7 ,such abusive practices in connection with overdraft coverage fees and nonsufficient fees have deprived consumers of meaningful options and placed significant financial burdens on low- and moderate-income consumers4 7#f7 ,during the public health and financial crisis caused by the novel coronavirus1 consumers need relief from such abusive practices more than ever before4 7b7 ,purpose ,it is the purpose of this ,act to protect consumers by eliminating abusive overdraft coverage fees1 nonsufficient fund fees1 and practices relating to the assessment of those fees during covered periods4 #c4 ,definitions ,in this ,act3 7#a7 ,check ,the term check-- 7,a7 has the meaning given the term in section #c7f7 of the ,check ,clearing for the #bast ,century ,act 7#ab ,u4,s4,c4 #ejjb7f772 and 7,b7 does not include a traveler's check4 7#b7 ,checking account penalty fee ,the term checking account penalty fee means a nonsufficient fund fee or an overdraft coverage fee4 7#c7 ,consumer ,the term consumer has the meaning given the term in section #ajc7;i7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7;i774 7#d7 ,consumer reporting agency ,the term consumer reporting agency has the meaning given the term in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a74 7#e7 ,covered period ,the term covered period means-- 7,a7 the period that begins #a day after the date on which a major disaster is declared by the ,president under section #dja of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagj71 where assistance is authorized under section #djh of that ,act 7#db ,u4,s4,c4 #eagd71 and ending #abj days after the end of the incident period for that disaster2 or 7,b7 the period that begins #a day after the date on which the ,president determines an emergency exists under section #eja7;b7 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eaia7;b77 and simultaneously covers all ,states for a single incident1 event1 or emergency and ending #abj days after the end of the incident period for that emergency4 7#f7 ,depository institution ,the term depository institution has the same meaning as 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#g7 ,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#h7 ,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#i7 ,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 debit4 7#aj7 ,overdraft coverage fee ,the term overdraft coverage fee means any fee or charge assessed in connection with overdraft coverage1 or in connection with any negative account balance that results from overdraft coverage1 excluding-- 7,a7 a periodic rate in connection with an extension of credit through an overdraft line of credit program2 or 7,b7 a fee or charge imposed in connection with any transfer from an account linked to another transaction account4 7#aa7 ,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#ab7 ,transaction account ,the term transaction account has the meaning given the term in section #ai7;b77#a77;,c7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77;,c774 #d4 ,checking account penalty fees 7a7 ,prohibition 7#a7 ,in general ,during a covered period1 no depository institution may assess a checking account penalty fee for any transaction1 including a transaction at an automated teller machine1 a #a-time debit card transaction1 a transaction that involves the use of a check1 or an automatic recurring payment4 7#b7 ,correction ,if a depository institution assesses a checking account penalty fee during a covered period in violation of paragraph 7#a71 the depository institution shall be considered to be in compliance with that paragraph if the depository institution promptly reverses that assessment4 7b7 ,reports to consumer reporting agencies ,during a covered period1 no depository institution may report negative information regarding the use of overdraft coverage by a consumer to any consumer reporting agency4 7c7 ,rule of construction ,nothing in this section may be construed as prohibiting a depository institution1 during a covered period1 from retaining the discretion to pay1 without assessing a checking account penalty fee1 an overdraft incurred by a consumer4