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LD 142

An Act To Prohibit Financial Institutions From Charging Multiple Fees For Attempted Withdrawals Involving Insufficient Funds

132nd Legislature (2025-2026) Introduced by Sue Bernard and 1 co-sponsor

Directs Maine's Bureau of Financial Institutions to issue guidance on fees for insufficient funds withdrawals, aiming to curb multiple fees from a single attempted withdrawal.

Signed by Governor
#fees #financialinstitutions #regulation
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Bill Summary · LD 142

Summary — LD 142 (132nd Maine Legislature)

Title: An Act To Prohibit Financial Institutions From Charging Multiple Fees For Attempted Withdrawals Involving Insufficient Funds
Sponsor: Sen. Libby (Cumberland)
Committee: Health Coverage, Insurance and Financial Services
Introduced: January 14, 2025
Status: Signed by Governor (May 29, 2025)

Purpose / Intent

The bill was introduced to stop the practice by which a single attempted withdrawal that results in insufficient funds can trigger multiple insufficient‑funds or overdraft fees. Its stated goal is to protect consumers from being charged multiple fees for the same attempted transaction and to clarify how financial institutions should handle attempted withdrawals that exceed account balances.

Final form and key provision(s)

  • The bill was amended (Committee Amendment “A”, S‑94) and enacted. The engrossed version is a Resolve directing the Maine Bureau of Financial Institutions (within the Department of Professional and Financial Regulation) to issue guidance related to the charging of multiple fees for attempted withdrawals involving insufficient funds.
  • Rather than creating a new statutory prohibition with specified penalties, the enacted measure instructs the Bureau to develop and publish guidance to clarify acceptable practices for state‑regulated financial institutions when assessing fees for attempted withdrawals that result in insufficient funds.

Who is affected

  • Primary: State‑chartered financial institutions regulated by the Maine Bureau of Financial Institutions (e.g., state banks, trust companies, credit unions) that assess NSF/overdraft fees.
  • Secondary: Maine consumers and account holders who may have been subject to multiple fees for a single attempted withdrawal.
  • Regulators: The Bureau of Financial Institutions will be responsible for drafting and issuing the guidance.

Fiscal and administrative impact

  • Initial preliminary fiscal note: no fiscal impact.
  • Subsequent fiscal notes for the amended/engrossed versions: minor cost increase to the Department of Professional and Financial Regulation (Other Special Revenue Funds). These costs are expected to be minor and can be absorbed within existing budgeted resources.
  • No new dedicated funding or large administrative program was created.

Legislative timeline / procedural notes

  • Referred to committee: January 14, 2025.
  • Work session and divided report; carried over March 21, 2025.
  • Committee Amendment “A” (S‑94) adopted; Majority Ought to Pass As Amended reports accepted in May 2025.
  • Finally passed by the Legislature May 27, 2025; signed by the Governor May 29, 2025.

Practical effect and considerations

  • The enacted Resolve directs the regulator to provide clarity rather than imposing an explicit statutory ban. The practical impact will depend on the content and enforceability of the guidance the Bureau issues.
  • Consumers may see fewer instances of multiple fee assessments if the guidance restricts or clarifies fee‑assessment practices; financial institutions will receive direction about compliant fee practices.
  • For precise legal requirements, definitions (e.g., what constitutes a single attempted withdrawal) and any compliance deadlines, consult the final text of the enacted bill and the guidance issued by the Bureau once published.

Compiled from official sources — confirm details with the bill’s official record.

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