Protecting Consumers

Congresswoman Maloney has been an effective and tenacious champion for consumers. Her Credit Card Accountability Responsibility and Disclosure Act has saved consumers $12 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 $12 billion in one year alone. Read More

More on Protecting Consumers

Jul 12, 2021 In The News

A pair of congressional hearings on Capitol Hill in May served as a perfect setting for Democrats and Republicans to take shots at Wall Street’s most powerful bank CEOs.

While some Republicans focused their questioning around voting rights and "woke-ism," several Democrats took aim at the overdraft fee — a charge financial institutions levy on their customers when they overdraw their accounts. 

Jul 9, 2021 In The News

U.S. Congresswoman Carolyn B. Maloney (D-12) leads a press conference to discuss her Overdraft Protection Act of 2021.

U.S. Congresswoman Carolyn B. Maloney (D-12) leads a press conference to discuss her Overdraft Protection Act of 2021.

Jul 9, 2021 In The News

Queens Rep. Carolyn B. Maloney joined advocates in front of Wells Fargo on Madison on Friday to call on Congress to pass legislation to keep overdraft fee practices in check.

The Overdraft Protection Act of 2021, introduced by Maloney last week, would improve the transparency of overdraft programs for consumers.

Jun 30, 2021 In The News

A senior House Democrat is reviving her campaign to crack down on overdraft fees with legislation introduced on Wednesday that would impose limits on the size and frequency of such charges at financial institutions.

Flanked by consumer advocates, Rep. Carolyn Maloney, D-N.Y., unveiled the latest version of her Overdraft Protection Act at a Washington, D.C., press conference, saying the banking industry hasn't done a good enough job of reining in "manipulative and predatory" practices like reordering transactions to maximize overdraft fees.

Jun 30, 2021 In The News

WASHINGTON — In the latest example of pressure on banks to rein in overdraft fees, a senior House Democrat has reintroduced legislation to restrict the charges.

Rep. Carolyn Maloney, D-N.Y., held a press conference Wednesday to tout the Overdraft Protection Act, which would restrict the number of times banks can collect the fees and is also intended to ensure that charges are reasonable.

“The Overdraft Protection Act will keep money in people's pockets,” Maloney said.

Jun 30, 2021 In The News

Democrats are once again taking aim at dreaded bank overdraft fees.

New York Congresswoman Carolyn Maloney reintroduced legislation on Wednesday that would crack down on overdraft fees, making it illegal for banks to charge more than one fee per month.

Jun 24, 2021 In The News

Rep. Carolyn Maloney, D-NY, said Wednesday she plans to introduce her Overdraft Protection Act next week. She has introduced the bill in every Congress since 2009, but has yet to see it pass. 

This session will be different, the congresswoman said, adding she is confident her bill, which would force more transparency on predatory overdraft practices, will make it to President Joe Biden’s desk.

Jun 17, 2021 In The News

New York Democrats want JPMorgan Chase to return the overdraft fees the bank collected during the pandemic — and to scrap the hated charges altogether.

Jun 2, 2021 In The News

Ally Bank is scrapping overdraft fees permanently, explaining that the penalty charges prompt customer anxiety and disproportionately affect people of color.

The bank, a unit of the $181.9 billion-asset Ally Financial in Detroit, had previously waived overdraft fees early in the pandemic. Ally Bank grew quickly over the last decade as many consumers flocked to online savings accounts, and has long been far less reliant on overdraft fee revenue than many other large and mid-sized banks.

May 27, 2021 In The News

The heads of major U.S. retail banks faced renewed criticism Thursday from Democratic lawmakers who said financial institutions should not have charged Americans billions of dollars in overdraft and other fees during the pandemic.

Testifying before Congress for the second time this week, the CEOs of JPMorgan Chase, Bank of America, Citigroup Inc and Wells Fargo highlighted their banks’ efforts to waive fees and offer more affordable accounts after Senator Elizabeth Warren attacked them over the costs.