I 
113TH CONGRESS 
1ST SESSION H. R. 3137 
To provide a framework establishing the rights, liabilities, and responsibilities 
of participants in closing procedures for certain types of consumer deposit 
accounts, to protect individual consumer rights, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2013 
Ms. SCHAKOWSKY (for herself, Mr. CONYERS, Mr. DEFAZIO, Mr. ELLISON, 
Mr. GRIJALVA, Mr. GUTIE´RREZ, Ms. LEE of California, and Ms. NOR-
TON) introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To provide a framework establishing the rights, liabilities, 
and responsibilities of participants in closing procedures 
for certain types of consumer deposit accounts, to protect 
individual consumer rights, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Freedom and Mobility 
in Consumer Banking Act’’. 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
SEC. 2. CONSUMER RIGHTS WITH RESPECT TO CLOSED AC-
COUNTS. 
The Truth in Savings Act (12 U.S.C. 4301 et seq.) 
is amended— 
(1) by striking section 262 and inserting the 
following: 
‘‘SEC. 262. FINDINGS AND PURPOSES. 
‘‘(a) FINDINGS.—Congress finds that— 
‘‘(1) economic stability would be enhanced, 
competition between depository institutions would be 
improved, and the ability of the consumer to make 
informed decisions regarding deposit accounts, and 
to verify accounts, would be strengthened if there 
were uniformity in the disclosure of terms and con-
ditions on which interest is paid and fees are as-
sessed in connection with such accounts; and 
‘‘(2) consumers lack meaningful choices for 
managing household funds because— 
‘‘(A) despite dissatisfaction with rising ac-
count fees at some depository institutions, con-
sumers often find it too difficult to move their 
funds to new deposit accounts; 
‘‘(B) the process of moving funds to new 
deposit accounts often involves several steps 
and substantial time to complete, and it is not 
always clear what the proper procedures are for 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
closing an account at a given depository institu-
tion; 
‘‘(C) depository institutions have no obliga-
tion and may lack the technical capabilities to 
help consumers transfer automated deposits or 
debits from old accounts to new accounts, caus-
ing delays and confusion; 
‘‘(D) depository institutions may charge 
fees to close an account and withdraw available 
funds, which can impede banking mobility for 
low-income consumers; and 
‘‘(E) some depository institutions have en-
gaged in the practice of reopening closed ac-
counts without the consent of the consumer. 
‘‘(b) PURPOSES.—The purposes of this Act are— 
‘‘(1) to allow consumers to make a meaningful 
comparison between competing claims of depository 
institutions with regard to deposit accounts by re-
quiring the clear and uniform disclosure of— 
‘‘(A) the rates of interest that are payable 
on deposit accounts by depository institutions; 
and 
‘‘(B) the fees that are assessable against 
deposit accounts; and 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(2) to protect rights of consumers by providing 
a framework establishing the rights, liabilities, and 
responsibilities of depository institutions and con-
sumers in closing procedures for certain types of 
consumer deposit accounts.’’; 
(2) by inserting after section 268 the following: 
‘‘SEC. 268A. CLOSURE OF COVERED ACCOUNTS. 
‘‘(a) IN GENERAL.—A depository institution may 
not— 
‘‘(1) prohibit a consumer from closing a covered 
account at the depository institution, regardless of 
whether the balance in the covered account is posi-
tive, zero, or negative; 
‘‘(2) charge any fee to close a covered account; 
or 
‘‘(3) reopen a covered account that a consumer 
has requested to be closed in accordance with this 
section 
to 
apply 
subsequent 
debits, 
whether 
preauthorized or otherwise, or for any other reason, 
unless the consumer expressly requests that the cov-
ered account be reopened. 
‘‘(b) DISCLOSURES REQUIRED.—A depository insti-
tution shall provide to any consumer that opens a covered 
account at the depository institution a description of the 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
policies and procedures that the depository institution has 
in place to close a covered account— 
‘‘(1) at the time the consumer opens the cov-
ered account; 
‘‘(2) at any time, upon request of a consumer; 
and 
‘‘(3) on the website of the depository institu-
tion. 
‘‘(c) REGULATIONS RELATING TO CLOSURE OF COV-
ERED ACCOUNTS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Bureau, 
after consultation with each agency referred to in 
section 270(a), and public notice and opportunity for 
comment, shall prescribe final regulations to carry 
out this section. 
‘‘(2) CONTENT.—The regulations required by 
this subsection shall— 
‘‘(A) require that a depository institution 
close a covered account not later than 5 busi-
ness days after the date on which a consumer 
makes a request to close the covered account, 
except that the closure of the covered account 
may be delayed— 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(i) if a Federal or State law enforce-
ment agency notifies the depository institu-
tion that the closure will interfere with a 
criminal investigation; or 
‘‘(ii) pursuant to any other exception 
that the Bureau determines is appropriate; 
‘‘(B) prescribe the methods by which a 
consumer may make a request to a depository 
institution to close a covered account, which, 
except as provided in subparagraph (C), shall 
include requests made in person, over the 
phone, or by other electronic or remote means; 
‘‘(C) allow a depository institution to re-
quire that a request by a consumer to close a 
covered account shall be made in person if the 
covered account contains an amount on deposit 
exceeding a certain monetary threshold, as de-
termined and established by the Bureau; 
‘‘(D) establish procedures that require a 
depository institution to positively verify the 
identity of a consumer requesting to close a 
covered account before the depository institu-
tion closes the covered account, including proce-
dures for a depository institution to follow if 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
the depository institution is unable to verify the 
identity of the consumer; 
‘‘(E) establish procedures for a depository 
institution to provide a consumer with the 
funds contained in a covered account that the 
consumer has requested to close, which shall in-
clude procedures— 
‘‘(i) that ensure that the consumer 
whose identity has been positively verified 
by the depository institution has access to 
any funds available for withdrawal at the 
time the consumer makes a request to the 
depository institution to close the covered 
account; 
‘‘(ii) that establish a reasonable 
amount of time for the depository institu-
tion to remit to the consumer the remain-
der of any funds in the closed covered ac-
count, including funds that are subject to 
a dispute between the depository institu-
tion and the consumer; and 
‘‘(iii) that allow a consumer whose 
identity has been positively verified by the 
depository institution to receive available 
funds from a covered account that the con-
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
sumer has requested to close in the form 
of— 
‘‘(I) a cashier’s check provided to 
the consumer; 
‘‘(II) an electronic funds transfer 
to an account designated by the con-
sumer; 
‘‘(III) any means offered by the 
depository institution that the con-
sumer has requested; or 
‘‘(IV) any means that the Bureau 
determines appropriate; 
‘‘(F) except as provided under subpara-
graph (G), prohibit a depository institution 
from imposing any fee or charge on a covered 
account at the depository institution after the 
consumer has requested to close the covered ac-
count; 
‘‘(G) allow a depository institution to as-
sess an overdraft fee after a consumer has re-
quested to close a covered account, if such over-
draft fee is associated with a transaction that 
was initiated by the consumer before the date 
on which the consumer made a request to the 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
depository institution to close the covered ac-
count; 
‘‘(H) not limit the ability of a consumer to 
earn interest that a covered account had ac-
crued before the date on which the consumer 
made a request to the depository institution to 
close the covered account; 
‘‘(I) establish procedures for a depository 
institution and a consumer to follow if a per-
sonal check written by the consumer is depos-
ited by a person other than the consumer after 
the date on which the consumer has closed a 
covered account; 
‘‘(J) require the depository institution to 
provide the consumer with certain information 
before the depository institution closes a cov-
ered account of the consumer, including— 
‘‘(i) a list of any preauthorized trans-
actions relating to the covered account that 
occurred within the 60 days preceding the 
date on which the consumer made a re-
quest to the depository institution to close 
the covered account; 
‘‘(ii) a list of any preauthorized trans-
actions scheduled to occur in the 60 days 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
after the date on which the consumer made 
a request to the depository institution to 
close the covered account; 
‘‘(iii) a list of any direct deposits into 
the covered account in the 60 days pre-
ceding the date on which the consumer 
made a request to the depository institu-
tion to close the covered account; and 
‘‘(iv) any other information that the 
Bureau determines is necessary to provide 
consumers 
with 
adequate 
information 
about potential preauthorized activity re-
lating to the covered account; 
‘‘(K) prohibit a depository institution from 
reporting an outstanding balance or any other 
adverse information with respect to a covered 
account at the depository institution to any con-
sumer reporting agency, as defined in section 
603(f) of the Fair Credit Reporting Act (15 
U.S.C. 1681a), if— 
‘‘(i) at the time the covered account is 
closed, the covered account has a negative 
balance resulting solely from any fee as-
sessed by the depository institution; and 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(ii) that information could be used to 
adversely affect the ability of the consumer 
to open an account at another depository 
institution; 
‘‘(L) establish the terms under which a de-
pository institution may report that a covered 
account had a negative balance at the time of 
the closure of the covered account to a con-
sumer reporting agency, as defined in section 
603(f) of the Fair Credit Reporting Act (15 
U.S.C. 1681a), if the depository institution— 
‘‘(i) notifies the consumer of the nega-
tive balance; and 
‘‘(ii) provides the consumer with a 
reasonable period of time, as determined 
and established by the Bureau, to repay 
the negative balance; and 
‘‘(M) include any other provisions, guid-
ance, or exceptions that the Bureau determines 
are appropriate in order to facilitate the pur-
poses of this section. 
‘‘(d) STUDY; RULEMAKING.— 
‘‘(1) STUDY.— 
‘‘(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct a study 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(iv) recommendations to Congress 
and the appropriate Federal banking agen-
cies, including steps that the appropriate 
Federal 
banking 
agencies 
could 
take 
through rulemaking to facilitate the auto-
matic transfer of funds from a closed cov-
ered account to another account designated 
by the consumer. 
‘‘(C) REPORT.—Not later than 1 year 
after the date of enactment of this subsection, 
the Comptroller General shall issue a report to 
the Congress and the Bureau of Consumer Fi-
nancial Protection on the study required under 
subparagraph (A), including any findings and 
determinations made by the Comptroller Gen-
eral in carrying out such study. 
‘‘(2) RULEMAKING.—Not later than 1 year 
after the Bureau receives the report issued under 
paragraph (1)(C) the Bureau shall— 
‘‘(A) determine whether regulations should 
be issued to remove barriers that limit the abil-
ity of a consumer to close a covered account; 
and 
‘‘(B) if the Bureau determines that such 
regulations should be issued, the Bureau shall, 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS
in consultation with each agency referred to in 
section 270(a), and after public notice and op-
portunity for comment, issue such regula-
tions.’’; and 
(3) in section 274, by adding at the end the fol-
lowing: 
‘‘(9) AVAILABLE FOR WITHDRAWAL.—The term 
‘available for withdrawal’, with respect to funds de-
posited, means available for all uses generally per-
mitted to the customer for actually and finally col-
lected funds under the account agreement with the 
depository institution or policies of the depository in-
stitution, such as for payment of checks drawn on 
the account, certification of checks drawn on the ac-
count, electronic payments, withdrawals by cash, and 
transfers between accounts. 
‘‘(10) COVERED ACCOUNT.—The term ‘covered 
account’ means any checking, savings, or any other 
account that the Bureau may include, by regula-
tion.’’. 
Æ 
VerDate Mar 15 2010 
23:16 Sep 24, 2013
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6301
E:\BILLS\H3137.IH
H3137
emcdonald on DSK67QTVN1PROD with BILLS