Maloney: Predatory Overdraft Fees Must Be Stopped
NEW YORK, NY — Congresswoman Carolyn B. Maloney (D-NY), sponsor of the Overdraft Protection Act of 2019 and original cosponsor of the Stop Overdraft Profiteering During COVID-19 Emergency Act, released the following statement in response to a new report from the Center for Responsible Lending showing that overdraft fees cost consumers more than $11 billion in 2019.
“As the Center for Responsible Lending shows in this report, banks’ abusive overdraft practices continue to target the consumers who can least afford them– cash-strapped, low-income Americans. Now, with the COVID-19 crisis, even more Americans are struggling financially; an unprecedented 40 million Americans have applied for unemployment insurance since the pandemic hit. Just one overdraft penalty can quickly trigger hundreds of dollars in fees and drive customers into a financial hole. We need to stop these abusive practices once and for all by passing the Overdraft Protection Act.”