I 
109TH CONGRESS 
1ST SESSION H. R. 3449
To extend the protections of the Truth in Lending Act to overdraft protection 
programs and services provided by depository institutions, to require 
customer consent before a depository institution may initiate overdraft 
protection services and fees, to enhance the information made available 
to consumers relating to overdraft protection services and fees, to prohibit 
systematic manipulation in the posting of checks and other debits to 
a depository account for the purpose of generating overdraft protection 
fees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2005
Mrs. MALONEY (for herself, Mr. SANDERS, Mr. FRANK of Massachusetts, and 
Ms. LEE) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To extend the protections of the Truth in Lending Act to 
overdraft protection programs and services provided by 
depository institutions, to require customer consent be-
fore a depository institution may initiate overdraft pro-
tection services and fees, to enhance the information 
made available to consumers relating to overdraft protec-
tion services and fees, to prohibit systematic manipula-
tion in the posting of checks and other debits to a 
depository account for the purpose of generating over-
draft protection fees, 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 ‘‘Consumer Overdraft 
Protection Fair Practices Act’’. 
SEC. 2. RESTRICTIONS ON OVERDRAFT PROTECTION PRO-
GRAMS OR SERVICES. 
(a) TRUTH IN LENDING ACT AMENDMENTS.—
(1) DEFINITION.—Section 103 of the Truth in 
Lending Act (15 U.S.C. 1602) is amended by add-
ing at the end the following new subsection: 
‘‘(cc) TERMS RELATING TO SHORT-TERM EXTEN-
SIONS OF CREDIT UNDER OVERDRAFT PROTECTION PRO-
GRAMS.—
‘‘(1) OVERDRAFT PROTECTION FEE.—The term 
‘overdraft protection fee’ means any fee or charge 
imposed in connection with any account on which 
checks or other debits are paid by the institution in 
which such account is held even though there are in-
sufficient funds in the account to cover such checks 
or other debits, unless such fee or charge—
‘‘(A) is imposed on an incidental basis as 
a customer accommodation and no more than 3 
such overdraft fees are imposed during any cal-
endar year;
‘‘(B) is imposed in connection with an ex-
tension of credit to a transaction account of a 
consumer under a written open end consumer 
credit plan the purpose of which is to cover any 
check presented against, electronic fund trans-
fer from, or other debit of the account for the 
payment of which there are insufficient funds in 
the account; or 
‘‘(C) has been disclosed in connection with 
a program under which the overdraft is covered 
by funds transferred from another deposit, 
share, or other asset account. 
‘‘(2) OTHER TERMS.—
‘‘(A) CHECK.—The term ‘check’ has the 
same meaning as in section 3(6) of the Check 
Clearing for the 21st Century Act. 
‘‘(B) OTHER
DEBITS.—The term ‘other 
debits’ includes withdrawals from an account by 
the consumer through an automated teller ma-
chine and electronic fund transfers from an ac-
count that are initiated or authorized by the 
consumer. 
‘‘(C) ELECTRONIC FUND TRANSFER.—The 
term ‘electronic fund transfer’ has the same 
meaning as in section 903.
‘‘(D) 
ACCOUNT.—The 
term 
‘account’ 
means any account intended for use by and 
generally used by a consumer primarily for per-
sonal, family, or household purposes into which 
the consumer deposits funds. 
‘‘(E) TRANSACTION ACCOUNT.—The term 
‘transaction account’ has the same meaning as 
in section 19(b)(1)(C) of the Federal Reserve 
Act.’’. 
(2) RESTRICTIONS ON OVERDRAFT PROTECTION 
PROGRAMS OR SERVICES.—
(A) IN GENERAL.—Chapter 2 of the Truth 
in Lending Act (15 U.S.C. 1631 et seq.) is 
amended by adding at the end the following 
new section: 
‘‘§ 140. Restrictions on overdraft protection programs 
or services 
‘‘(a) IN GENERAL.—In the case of any transaction 
account of a consumer at any institution, no overdraft pro-
tection fee may be imposed on such account for any exten-
sion of funds by the institution to cover any check or other 
debit for which there are insufficient funds in the con-
sumer’s account to pay such check or other debit, unless—
‘‘(1) the consumer has provided specific written 
consent to any program or service that provides for