SEC. 2. NOTIFICATION OF OVERDRAFT FEE. 
(a) IN GENERAL.—Section 905 of the Electronic 
Fund Transfer Act (15 U.S.C. 1693c) is amended by add-
ing at the end the following new subsection: 
‘‘(d) NOTIFICATION OF OVERDRAFT FEE FOR IN- 
PERSON, AUTOMATED, TELEPHONIC, AND INTERNET- 
BASED TRANSACTIONS.— 
‘‘(1) IN GENERAL.—In the case of any financial 
institution that provides any overdraft protection 
service to any consumer on a flat, per-transaction 
basis in connection with a withdrawal from or debit 
of the consumer’s account at the financial institution 
in a transaction described in paragraph (2) that 
would result in an overdraft of such consumer ac-
count, no fee or charge may be imposed for such 
overdraft protection service unless the notice re-
quired by this subsection has been provided to the 
consumer, in the manner required under this sub-
section, before the completion of the transaction that 
would result in an overdraft. 
‘‘(2) SCOPE OF APPLICATION.—Paragraph (1) 
shall apply to any withdrawal from or debit of a con-
sumer’s account at a financial institution in a trans-
action initiated by the consumer as an electronic 
fund transfer or in person at a branch of the finan-
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
cial institution staffed by employees of the financial 
institution. 
‘‘(3) AUTOMATED
TELLER
MACHINE
TRANS-
ACTIONS.—In the case of any electronic fund trans-
fer initiated by a consumer at any automated teller 
machine, whether or not such machine is maintained 
by the financial institution that holds the account of 
the consumer initiating the transaction, the fol-
lowing disclosure rules shall apply: 
‘‘(A) BALANCE REQUESTS.— 
‘‘(i) IN GENERAL.—In the case of a 
request by the consumer at the automated 
teller machine for balance information, the 
display provided on the machine shall pro-
vide such information in a manner that 
differentiates between— 
‘‘(I) the funds available in the ac-
count that are attributable to deposits 
by or on behalf of the consumer; and 
‘‘(II) funds available to the cus-
tomer from the institution in connec-
tion with an overdraft protection serv-
ice. 
‘‘(ii) OVERDRAFT PROTECTION SERV-
ICE FEE AMOUNT.—On the same screen of 
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
the automated teller machine referred to in 
clause (i), the display shall provide infor-
mation on any fee that would be imposed 
for the provision of any overdraft protec-
tion service provided in connection with the 
transaction. 
‘‘(B) WITHDRAWAL OR TRANSFER.—In the 
case of a request by the consumer at the auto-
mated teller machine to initiate an electronic 
fund transfer that can be completed only if an 
overdraft protection service is provided to the 
consumer, the display provided on the machine 
shall provide the following notice, with the 
blanks filled in appropriately, and the option for 
the consumer to accept or decline the service: 
‘‘ ‘This request exceeds your funds available and 
will result in an overdraft of $ll and the im-
position of a fee from your financial institution 
of $ll. To accept this fee and continue with 
your transaction, press ‘‘ACCEPT’’. To termi-
nate this transaction, press ‘‘DECLINE’’.’. 
‘‘(4) AUTOMATED
POINT
OF
SALE
TRANS-
ACTION.—In the case of any electronic fund transfer 
initiated by a consumer at any automated point-of- 
sale machine that can be completed only if an over-
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
draft protection service is provided to the consumer 
for a fee, the following disclosure rules shall apply 
to the extent a screen operated in conjunction with 
the machine is available to the consumer for effec-
tuating the transaction: 
‘‘(A) NOTICE
OF
OVERDRAFT.—The dis-
play provided on the machine shall provide the 
following notice and the option for the con-
sumer to continue or discontinue the trans-
action: 
‘‘ ‘Transaction will result in an overdraft of 
$ll. To continue with your transaction, press 
‘‘CONTINUE’’. To terminate this transaction, 
press ‘‘NO’’.’. 
‘‘(B) NOTICE OF FEE.—If the consumer 
referred to in subparagraph (A) continues with 
the transaction, the display provided on the ma-
chine shall provide the following notice and the 
option for the consumer to accept or decline the 
fee: 
‘‘ ‘A fee of $ll will be imposed for the over-
draft. To accept this fee and continue with your 
transaction, press ‘‘ACCEPT’’. To terminate 
this transaction, press ‘‘DECLINE’’.’. 
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
‘‘(5) IN-PERSON
AND
TELEPHONIC
TRANS-
ACTIONS.—In the case of any fund transfer or with-
drawal initiated by a consumer in person at a 
branch of the financial institution staffed by employ-
ees of the financial institution or verbally over the 
telephone, the following disclosure requirements shall 
apply: 
‘‘(A) BALANCE
REQUESTS.—If, in the 
course of the transaction, the amount of the 
balance in the consumer’s account is mentioned 
or requested, the customer shall be made aware 
verbally of any distinction between— 
‘‘(i) the funds available in the account 
that are attributable to deposits by or on 
behalf of the consumer; and 
‘‘(ii) funds available to the customer 
from the institution in connection with an 
overdraft protection service. 
‘‘(B) OVERDRAFT
PROTECTION
SERVICE 
FEE
AMOUNT.—If the consummation of the 
withdrawal or fund transfer transaction would 
result in the imposition of an overdraft protec-
tion service fee on the account of the consumer, 
the consumer shall promptly be informed of 
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
such fact and the amount of the fee before the 
transaction is final. 
‘‘(6) INTERNET AND OTHER ELECTRONIC TER-
MINAL
TRANSACTIONS.—In the case of any elec-
tronic fund transfer initiated by the consumer at any 
electronic terminal or computer, other than an auto-
mated teller machine or automated point-of-sale ma-
chine meeting the requirements of paragraph (3) or 
(4), that can be completed only if an overdraft pro-
tection service is provided to the consumer for a fee, 
the display provided on the terminal or computer 
shall provide the following notice and the option for 
the consumer to accept or decline the fee: 
‘‘ ‘This request exceeds your funds available and will 
result in an overdraft of $ll and the imposition 
of a fee from your financial institution of $ll. To 
accept this fee and continue with your transaction, 
press ‘‘ACCEPT’’. To terminate this transaction, 
press ‘‘DECLINE’’.’. 
‘‘(7) DEFINITIONS.—For purposes of this sub-
section and section 906(c)(5), the following defini-
tions shall apply: 
‘‘(A) ANNUAL
PERCENTAGE
RATE.—The 
term ‘annual percentage rate’ means the rate of 
interest determined in the manner provided in 
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
section 108 and regulations prescribed by the 
Board under such section. 
‘‘(B) OVERDRAFT PROTECTION SERVICE.— 
The term ‘overdraft protection service’ means 
any service provided by a financial institution 
holding the account of any consumer pursuant 
to which any debit against the account is paid 
by the financial institution even though there 
are insufficient funds in the account to cover 
the amount of the debit, however such payment 
is accomplished, including through the use of 
overdraft lines of credit, linked accounts, or any 
overdraft protection program for which the fi-
nancial institution has not complied with the 
disclosure requirements under the Truth in 
Lending Act and regulations prescribed under 
such Act.’’. 
(b) INFORMATION REQUIRED IN PERIODIC STATE-
MENT.—Section 906(c) of the Electronic Fund Transfer 
Act (15 U.S.C. 1693d(c)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(3); 
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and 
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS
(3) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) with respect to each case in which the fi-
nancial institution was required to provide notice to 
a customer under any paragraph of section 905(d) 
of the imposition of an overdraft fee and the amount 
of the fee during the period covered by the periodic 
statement, a written statement of the annual per-
centage rate which the fee represents with respect to 
the amount of the overdraft in type no smaller than 
other required disclosures under this subsection, but 
not less than 8-point type, and in the following form: 
‘‘ ‘Overdraft Fee Annual Percentage Rate Notice: 
The overdraft fee resulting from your transaction 
dated lll is equal to an Annual Percentage Rate 
of ll% on your overdraft balance of $lll.’.’’. 
Æ 
VerDate Nov 24 2008 
05:05 Mar 14, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H1487.IH
H1487
bajohnson on PROD1PC77 with BILLS