WASHINGTON, Nov. 18 — Rep. Carolyn MaloneyD-new Yorkreleased the following article on Nov. 17, 2022:
At yesterday’s Financial Services Committee hearing entitled “Oversight of Prudential Regulators: Ensuring Safety, Clarity, Diversity, and Accountability of Depository Institutions,” Congresswoman Carolyn B. Maloney (D-NY), the committee’s senior member and author of the Overdraft Protection Act of 2021, advocated for more protection for consumers from overdraft fees and oversight of the cryptocurrency market.
During the listening session, Rep. Maloney “I want to encourage the joint work of this committee in 2009 when we passed the CARD, Bill of Rights of Cardholders. Consumer Financial Protection BureauThis bill alone has saved consumers $16 billion per year. I have submitted an overdraft bill that can be used for this purpose. The Consumer Financial Protection Bureau has discovered that overdraft fees are damaging to our customers $15 billion in 2019 only, and these fees target and penalize low-income consumers.
While I am happy to see that some banks have taken steps to remove these charges or move in that direction, it is concerning to me that it has taken this long; it is limited, and many banks have not yet voluntarily changed. I think there should be a common standard, and that’s why I’ve introduced the Overdraft Protection Act, which would reduce overdraft fees and would establish a more streamlined and transparent process for overdraft programs. This legislation was introduced in this Committee in July and as I said it is based on the Credit Card Freedom Bill.
Then he asked Mr. Martin GruenbergChairman of the board Federal Deposit Insurance Corporation (FDIC), “In 2010, after becoming Vice Chairman of the The FDIC rateand The FDIC rate issued regulatory guidance on overdraft charges. In your opinion, how has the overdraft system changed over time?
Mr. Gruenberg he replied, “Thank you Congressman. As you point out, this is a very public issue. I think the banks are starting to pay attention to this, and there has been progress as you mentioned in reducing the reduction of the agency’s reliance on overdraft fees. FDIC images In my opinion, the most important thing is our monitoring to make sure that the banks that use overdrafts are doing this clearly, that the consumers are fully informed, that the banks are following all the requirements including the fact that the consumers have to choose. – to choose overdraft coverage. We’ve heard about the issues we’ve heard about fees and the lack of financial disclosures that agencies don’t provide enough for consumers to understand what they’re paying, and in some cases we’ve taken action on that.
Rep. Maloney he continued, “Depending on how you look at it, there’s a certain trend right there The FDIC rate Can they categorize other money laundering programs, such as those that reform programs designed to increase bank fees that could harm consumers, as unsafe or unethical banking practices?
Mr. Gruenberg he replied, “That depends on how the practice is being used; it’s possible.”
Rep. Maloney then asked Mr. Michael BarrVice-Chairman in charge of the organization Board of Governors cha Federal Reserve System“Obviously, the explosion of the crypto platform FTX has been in the news. From your position with the Fed, do these events have anything to do with the financial system and the safety and well-being of our bank?
Mr. Barr he replied, “Thank you Congresswoman, until today the recent crypto events have had an impact on the banking sector but they have been gradually integrated. Many banks have been cautious about banking and crypto. Some banks provide banking services to the crypto sector, so we care about the risks it can bring. It affects the people affected, the consumers and the investors in those places and it’s very difficult.
Rep. Maloney He went on to say: “How do you feel about investing our wealth in unorganized things like you said would hurt consumers as much as they did recently?
Mr. Barr he replied, “We need to be careful and put in place the right tools to protect that if banks are working with crypto that is done safely and transparently, in a way that protects consumers and investors.”
Rep. Maloney finally he asked, “Do you think crypto should be regulated?”
Mr. Barr he replied, “Yes, I think the authorities should use their existing powers to do it Congress based on this section, it is important to strengthen the supervision of this section. ” [DR1 (https://maloney.house.gov/media-center/press-releases/rep-maloney-urges-consumer-protection-from-overdraft-fees-and-oversight#_msocom_1)] [DR2 (https://maloney.house.gov/media-center/press-releases/rep-maloney-urges-consumer-protection-from-overdraft-fees-and-oversight#_msocom_2)]
You can watch the Congresswoman’s edit here (https://youtu.be/lOjBqF7bGXA).
History
Congresswoman Maloney introduced HR 4277, the Overdraft Protection Act of 2021, last June. This law can:
* They require that the fee be “reasonable and proportional” to the cost of these repairs and the amount of money incurred;
* Prevent organizations from re-booking events to increase fees;
* Reduce the monthly fee to 1 per month and 6 per year;
* Encourage consumers by getting them to join overdraft programs in the first place – instead of just signing up;
* Improving transparency and disclosure; and
* Stop charging “debit hold” fees that exceed the actual amount, among other powerful measures.
The Overdraft Protection Act is based on the above Congresswoman Maloney The Credit CARD Act of 2009, which saves consumers approx $12 billion per year. In 2015 Price CFPB Studies have shown that this law has saved consumers $16 billion in the early years of its establishment.
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First statement here: https://maloney.house.gov/media-center/press-releases/rep-maloney-urges-consumer-protection-from-overdraft-fees-and-oversight
