House committee approves controversial overdraft bill

Legislation faces uncertain future and is strongly opposed by credit union groups and Republicans.

The House Financial Services Committee on Thursday approved legislation that would limit the number of overdraft fees a credit union or bank may charge a consumer.

Voting 27–22, the committee approved H.R. 4277, legislation that would limit financial institutions from charging consumers more than one overdraft fee per month and more than six in a year.

Republicans vehemently opposed the bill, and it faces an uphill battle, since it likely would take 60 votes to pass in the Senate. Financial trade groups, including CUNA and NAFCU, have been lobbying against the measure.

The bill was approved during a two-day markup of several bills, during which House Financial Services Committee ranking Republican Patrick McHenry of North Carolina charged that Democrats simply were bringing up legislation with an eye toward the fall election.

 

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