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Bill

Bill

A 117

Relates to overdraft fees charged by banking organizations

2025 Regular Session Introduced by John Zaccaro

Bill A 117 limits overdraft fees, ensuring fair practices and transparency to protect consumers, especially low-income individuals, from excessive financial burdens.

REFERRED TO BANKS
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WeVote Research Nonpartisan
Bill Summary · A 117

Summary of Bill A 117

Bill Information

  • Bill Number: A 117
  • Title: Relates to overdraft fees charged by banking organizations
  • Status: Referred to Banks Committee
  • Introduced: January 08, 2025
  • Classification: Bill

Purpose and Intent

Bill A 117 aims to address the issue of overdraft fees charged by banking organizations. The legislation seeks to regulate these fees to ensure they are fair and transparent for consumers. The intent is to protect consumers from excessive charges that can lead to financial hardship, particularly for low-income individuals and families.

Key Provisions

While the specific text of the bill is not provided, typical provisions in similar legislation may include:

  • Limitations on Fees: Establishing a cap on the amount that banks can charge for overdrafts, potentially reducing the financial burden on consumers.
  • Disclosure Requirements: Mandating that banks provide clear and comprehensive information about overdraft fees, including when they are applied and how they can be avoided.
  • Consumer Protections: Implementing measures to protect consumers from being charged multiple overdraft fees for a single transaction or for transactions that occur within a short time frame.
  • Alternatives to Overdrafts: Encouraging banks to offer alternatives to overdraft protection, such as linking to savings accounts or providing small loans.

Who Would Be Affected

The primary beneficiaries of Bill A 117 would be consumers who utilize banking services, particularly those who are vulnerable to overdraft fees. This includes:

  • Low-Income Individuals: Those who may frequently overdraw their accounts due to limited financial resources.
  • Banking Organizations: Banks and credit unions that will need to adjust their fee structures and practices in compliance with the new regulations.
  • Consumer Advocacy Groups: Organizations that support consumer rights and financial literacy may find this bill aligns with their goals.

Procedural Aspects

  • Current Status: The bill has been referred to the Banks Committee as of January 08, 2025. This indicates that it is in the early stages of the legislative process, where it will be reviewed, debated, and potentially amended before being brought to a vote.
  • Related Legislation:
    • A 8266: A prior-session bill that may have addressed similar issues regarding overdraft fees.
    • S 7031: A companion bill in the Senate that likely mirrors the provisions of A 117, facilitating a coordinated legislative effort.

Conclusion

Bill A 117 represents a significant step towards reforming overdraft fee practices in the banking industry. By aiming to establish fairer fee structures and enhance consumer protections, the bill seeks to alleviate financial stress for consumers while promoting transparency in banking operations. As it progresses through the legislative process, further details and specific provisions will be clarified.

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

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