I

107TH CONGRESS

1ST SESSION H. R. 1059

To require insured depository institutions to make affordable transaction

accounts available to their customers, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 15, 2001

Mr. LAFALCE (for himself, Mr. KANJORSKI, Mr. GUTIERREZ, Ms. LEE, Mrs.

JONES of Ohio, Mr. CAPUANO, Mr. CLAY, Mr. HINCHEY, and Ms.

SCHAKOWSKY) introduced the following bill; which was referred to the

Committee on Financial Services

A BILL

To require insured depository institutions to make affordable

transaction accounts available to their customers, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Consumer Affordable

5 Transaction Account Act of 2001’’.

6 SEC. 2. AFFORDABLE BANKING SERVICES.

7 (a) IN GENERAL.—Except as otherwise provided in

8 this section, each insured depository institution shall make

9 available to consumers a consumer transaction account,
2

•HR 1059 IH

1 to be known as an ‘‘affordable transaction account’’, with

2 the following features to be prescribed jointly by the Fed3 eral banking agencies, by regulation:

4 (1) INITIAL DEPOSIT.—The maximum amount

5 which an insured depository institution may require

6 as an initial deposit, if any.

7 (2) MINIMUM BALANCE.—The maximum

8 amount an insured depository institution may re9 quire as a minimum balance, if any, to maintain

10 such account.

11 (3) MINIMUM NUMBER OF FREE WITH12 DRAWALS.—A minimum of 8 withdrawal trans13 actions, including withdrawals by negotiable or

14 transferable instruments for the purpose of making

15 payments to third parties and electronic fund trans16 fers, during any periodic cycle at no additional

17 charge to the account holder.

18 (4) MAXIMUM MONTHLY SERVICE CHARGE.—

19 The maximum amount an insured depository institu20 tion may charge per periodic cycle for the use of

21 such account.

22 (b) FEES FOR WITHDRAWAL TRANSACTIONS IN EX23 CESS OF MINIMUM NUMBER OF FREE WITHDRAWALS.—

24 (1) IN GENERAL.—Subject to paragraph (2), in

25 the case of any affordable transaction account—
3

•HR 1059 IH

1 (A) an insured depository institution may

2 impose a reasonable per-transaction charge for

3 any withdrawal transaction described in sub4 section (a)(3) other than a transaction required

5 under such subsection to be provided free; or

6 (B) the depository institution may impose

7 the fees and charges normally applied to other

8 consumer transaction accounts available at that

9 depository institution.

10 (2) LIMITATIONS.—

11 (A) PERIODIC CYCLE FEE ADJUSTMENT.—

12 The amount of any charge per periodic cycle

13 imposed by an insured depository institution on

14 any affordable transaction account pursuant to

15 paragraph (1)(B) shall be reduced by the

16 charge imposed under subsection (a)(4).

17 (B) MAXIMUM AMOUNT.—At no time shall

18 the total amount of fees and charges imposed

19 by an insured depository institution on any af20 fordable transaction account exceed the total

21 amount of fees and charges that is normally ap22 plied to other consumer transaction accounts

23 available at the depository institution.

24 (c) CONDITIONS FOR OPENING ANY AFFORDABLE

25 TRANSACTION ACCOUNT.—An insured depository institu-
4

•HR 1059 IH

1 tion may require as a condition for opening or maintaining

2 any affordable transaction account that—

3 (1) the holder of the account be a resident of

4 the State in which the account is opened or main5 tained; and

6 (2) the deposits to the account of recurring

7 payments such as Social Security, wage, or pension

8 payments be made by direct deposit if that form of

9 deposit is available to both the consumer and the de10 pository institution.

11 (d) OTHER TERMS AND CONDITIONS.—

12 (1) IN GENERAL.—Except as provided in this

13 section and any regulations prescribed under this

14 section, any affordable transaction account may be

15 offered by an insured depository institution subject

16 to the same rules, conditions, and terms normally

17 applicable to other consumer transaction accounts

18 offered by the depository institution.

19 (2) PROHIBITION ON DISCRIMINATION AGAINST

20 AFFORDABLE TRANSACTION ACCOUNT HOLDERS IN

21 PROVIDING OTHER SERVICES.—The amount of any

22 fee or charge imposed on a holder of any affordable

23 transaction account by an insured depository institu24 tion for specific services provided to such account

25 holder which are not directly related to the mainte-
5

•HR 1059 IH

1 nance of such account may not exceed the fee or

2 charge imposed by the depository institution for pro3 viding the same services in connection with other

4 consumer transaction accounts offered by the deposi5 tory institution.

6 (e) AFFORDABLE TRANSACTION ACCOUNTS NOT RE7 QUIRED FOR INDIVIDUALS WHO MAINTAIN OTHER

8 TRANSACTION ACCOUNTS.—An insured depository institu9 tion shall not be required to permit any person to open

10 or maintain an affordable transaction account pursuant

11 to this section if such person maintains another consumer

12 transaction account either at that depository institution

13 or any other insured depository institution.

14 (f) ALTERNATIVE ARRANGEMENTS.—In lieu of the

15 affordable transaction account required by this section, an

16 insured depository institution may make available an al17 ternative form of account or other banking services if the

18 appropriate Federal banking agency determines that such

19 alternative form of account or services are at least as ad20 vantageous to consumers as the affordable transaction ac21 count.

22 (g) DISCLOSURE REQUIREMENTS.—

23 (1) POSTED NOTICES.—If an insured depository

24 institution posts in the public area of any office of

25 the institution a notice of the availability of other
6

•HR 1059 IH

1 consumer transaction accounts, the depository insti2 tution shall also post equally conspicuous notice in

3 such public area and in the same manner the avail4 ability of its affordable transaction accounts.

5 (2) PRINTED MATERIAL.—If an insured deposi6 tory institution makes available in the public area of

7 any office of the institution printed material describ8 ing the terms of its other consumer transaction ac9 counts, the depository institution shall also make

10 comparable descriptive printed material concerning

11 the affordable transaction accounts available in the

12 same such area and in the same manner.

13 (h) DEFINITIONS.—For purposes of this section, the

14 following definitions shall apply:

15 (1) CONSUMER TRANSACTION ACCOUNT.—For

16 purposes of this section, the term ‘‘consumer trans17 action account’’ means a demand deposit account,

18 negotiable order of withdrawal account, share draft

19 account, or any similar transaction account used pri20 marily for personal, family or household purposes.

21 (2) DEPOSITORY INSTITUTION.—The term ‘‘de22 pository institution’’ has the same meaning as in

23 section 19(b)(1)(A) of the Federal Reserve Act.

24 (3) FEDERAL BANKING AGENCY.—The term

25 ‘‘Federal banking agency’’—
7

•HR 1059 IH

1 (A) has the same meaning as in section

2 3(z) of the Federal Deposit Insurance Act; and

3 (B) includes the National Credit Union

4 Administration Board.

5 (4) INSURED DEPOSITORY INSTITUTION.—The

6 term ‘‘insured depository institution’’—

7 (A) has the same meaning as in section

8 3(c)(2) of the Federal Deposit Insurance Act;

9 and

10 (B) includes an insured credit union (as

11 defined in section 101(7) of the Federal Credit

12 Union Act).

13 (i) COMPLIANCE WITH MORE STRINGENT STATE

14 LAW.—If a depository institution operates in a State the

15 laws of which, including regulations, require a depository

16 institution operating in such State to meet requirements

17 for affordable transaction accounts which are more advan18 tageous to the consumer than the requirements of this sec19 tion or the regulations prescribed under this section, such

20 depository institution may not be treated as a qualified

21 depository institution for purposes of section 19(b)(12) of

22 the Federal Reserve Act, unless such depository institu23 tion meets the requirements of this section and the re24 quirements of such State law.
8

•HR 1059 IH

1 (j) RULE OF CONSTRUCTION.—No provision of this

2 section, title LXII of the Revised Statutes of the United

3 States, the Home Owners’ Loan Act, the Bank Enterprise

4 Act of 1991, the Alternative Mortgage Transaction Parity

5 Act of 1982, or any other Federal law may be construed

6 as preempting, or providing any basis for the Comptroller

7 of the Currency or the Director of the Office of Thrift

8 Supervision to conclude that Federal law in any way pre9 empts, the law of any State which requires depository in10 stitution operating in that State to provide affordable

11 transaction accounts, including the Omnibus Consumer

12 Protection and Banking Deregulation Act of 1994 of the

13 State of New York and the New Jersey Consumer Check14 ing Account Act (as in effect on the date of the enactment

15 of this Act).

16 (k) COORDINATION OF REGULATIONS.—Each Fed17 eral banking agency shall—

18 (1) consult and coordinate with other Federal

19 banking agencies to ensure that regulations pre20 scribed by each such agency are consistent with and

21 comparable to the regulations prescribed by each

22 other such agency; and

23 (2) prescribe regulations in final form to imple24 ment this section before the end of the 6-month pe-
9

•HR 1059 IH

1 riod beginning on the date of the enactment of this

2 Act.

Æ