Overdraft bill pulled from markup; ILC ‘loophole’ closure approved

Credit union trade groups scored a victory last week, when the House Financial Services Committee pulled from a markup a bill that would regulate overdraft programs at credit unions and banks.

Financial services trade groups, including the Credit Union National Association (CUNA) and the National Association of Federally-Insured Credit Unions (NAFCU), had been outspoken in their opposition to the legislation.

The committee gave no explanation for the move and aides to Rep. Carolyn Maloney, D-N.Y., the bill’s sponsor, did not respond to a request for comment.

However, sources familiar with the committee’s work said that Maloney did not have the Democratic votes needed to approve the legislation and send it to the full House. Since Republicans had been expected to vote against the bill, those Democratic votes were needed to approve the legislation.

 

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