Protecting Consumers

Congresswoman Maloney has been an effective and tenacious champion for consumers. Her Credit Card Accountability Responsibility and Disclosure Act has saved consumers $10 billion a year since it was signed into law in 2009.  As Americans recover from our worst financial crisis since the Great Depression—brought on in part by financial firms’ unfair and predatory practices—it is imperative to protect the American consumer.

Overdraft Protections: Along with many of her Democratic colleagues, Congresswoman Maloney has introduced the Overdraft Protection Act. Financial institutions have increasingly used overdraft “protection” plans in a way that is deceptive and unfair to consumers, despite a Federal Reserve Rule that requires financial institutions to obtain consumers’ consent to opt into overdraft coverage. This problem is significant. The FDIC reports that the vast majority of large banks enroll consumers automatically in overdraft plans, charge an average of $35 per overdraft, and manipulate the order transactions to post in a way that maximizes overdraft fees. Read More

Identity Theft Protection: Each week we hear of a new loss of personal data that threatens thousands of Americans with identity theft. In this age of electronic banking and internet transactions, it is easier than ever to have your personal data stolen. Almost every state, including New York, has responded to this threat by enacting laws that allow individuals to protect themselves from identity theft by controlling access to their credit report and the personal data it contains.   Congresswoman Maloney is working in Congress to expand this “file freeze” protection at the national level and enhance notification requirements when personal data is lost. By now, many victims have found out the hard way that once a criminal sets up false accounts in your name, it can be very difficult to clear your credit. In this case it may be years before you can buy a car, buy a house, or get a credit card. Read More

CFPB: Congresswoman Maloney proudly supported the creation of the Consumer Financial Protection Bureau (CFPB), a key component of the Dodd-Frank Wall Street Reform & Consumer Protection Act. The CFPB consolidates consumer protection and regulation of financial practice, and allows consumers the opportunity to provide feedback on and make inquiries about financial consumer products. When families are dealing with financial institutions to open a bank account, take out a loan to send a child to college, or apply for a mortgage, they will be able to trust that the process is fair and transparent. Read More

Credit Card Accountability Responsibility and Disclosure Act of 2009: In the 111th Congress, Congresswoman Maloney authored and passed the Credit Card Accountability Responsibility and Disclosure Act of 2009, which became law on May 22, 2009 [Public Law 111-24].   This bill eliminated credit card practices that the Federal Reserve had deemed unfair and deceptive to customers, and which had an anticompetitive effect, such as retroactive interest rate increases on existing balances, double cycle billing, and agreements that allowed issuers to raise rates “any time for any reason,” without even providing effective notice.  The law ended these practices that, according to some estimates, cost consumers $10 billion in one year alone. Read More

More on Protecting Consumers

Oct 6, 2016 Press Release

NEW YORK – Congresswoman Carolyn B. Maloney (NY-12) outlined priorities for cybersecurity of the financial system today at Symphony’s “Innovate 2016” conference. During her remarks, the Congresswoman noted that the risks posed by cyberattacks “have grown significantly in the past few years” and that in order to address these new dangers, we, as a country, must recognize that they go beyond businesses issues, but must be addressed as a policy issue due to operational risk, disruption of financial activity and threats to customer privacy. Rep.

Apr 15, 2016 Press Release

WASHINGTON, D.C. – As today’s budget deadline passed with House Republicans refusing to bring any proposal to the floor for a vote, Congresswoman Carolyn B. Maloney (NY-12) echoed her floor speech from yesterday, calling on the Republican-led Budget Committee to redraft their budget blueprint and meet the responsibilities of governing by adopting a budget that helps everyday hardworking Americans and their families.

Dec 3, 2015 Press Release

WASHINGTON – Six years after Congresswoman Carolyn B. Maloney’s (D-NY) Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act) took effect, consumers have saved more than $16 billion dollars, according to a new report released today by the Consumer Financial Protection Bureau.

“The CARD Act has been a win-win for consumers. Not only has the CARD Act put $16 billion back into the pockets of middle-class Americans, as this important report shows, but it has also increased access to credit, and lowered the cost of credit for consumers.”

Sep 10, 2014 Press Release

WASHINGTON – Congresswoman Carolyn B. Maloney (D-NY) today urged Consumer Financial Protection Bureau Director Richard Cordray to act immediately to curb abusive overdraft fees. Maloney, who authored the Credit Card Accountability Responsibility and Disclosure Act of 2009, says the CFPB has the authority to limit overdraft fees charged to bank accounts in the same way her bill limited similar fees on credit card transactions. The Congresswoman called for two specific actions by the CFPB: a limit on overdraft fees and expanded opt-in requirements.

Jul 31, 2014 Press Release

WASHINGTON – Congresswoman Carolyn B. Maloney (D-NY) is calling for the House to consider legislation she introduced to end abusive overdraft fees after a new report from the Consumer Financial Protection Bureau found that, in lending terms, certain overdraft fees are tantamount to a 17,000 percent annual percentage rate (APR).

Feb 26, 2014 Press Release

WASHINGTON – Congresswoman Carolyn Maloney (D-NY) says a new study from the Government Accountability Office is further proof that the Credit Card Accountability Responsibility and Disclosure Act reforms she authored are working. The GAO report released Monday found that credit card companies have significantly curtailed their marketing of credit cards to college students. 

Mar 12, 2009 Press Release

WASHINGTON, DC – With the growth in the use of debit cards for everyday purchases, it’s become much easier to overdraw a checking account. When that happens, it often incurs an overdraft fee—because most banks offer or require “overdraft protection”—and you don’t know it until you get your bank statement or happen to check your balance. What’s more, multiple overdraft fees can be incurred based on what sequence the transactions are posted to a consumer’s account.

Rep. Carolyn Maloney (D-NY), senior member of the House Financial Services Committee, along with Reps.Gary Ackerman, Brad Miller, Keith Ellison, Jackie Speier, John Tierney and Anna Eshoo as cosponsors, today introduced the “Consumer Overdraft Protection Fair Practices Act” (H.R. 1456) which would require notice to customers at the ATM or point-of-sale terminal when a purchase is about to trigger an overdraft—and would give consumers at the transaction point a choice of whether to accept or reject the overdraft service and the associated fee. 

Sep 23, 2008 Press Release

Washington, DC, Sept. 23—In an historic action, the U.S. House acted to regulate practices in the credit card industry for the first time today by passing H.R. 5244, the Credit Cardholders’ Bill of Rights, sponsored by Reps. Carolyn Maloney (D-NY) and Barney Frank (D-MA). It passed the House by a vote of 312 to 112.

Feb 6, 2008 Press Release

WASHINGTON, DC – House Financial Institutions and Consumer Credit Subcommittee Chairwoman Carolyn B. Maloney (D-NY) today introduced the “Credit Cardholders’ Bill of Rights Act of 2008” (H.R. 5244), comprehensive credit card reform legislation aimed at leveling the playing field between credit card companies and consumers.  The balanced bill abolishes major industry abuses that unfairly hurt consumers while fostering fair competition and free market values.