I 
116TH CONGRESS 
2D SESSION 
H. R. 6576 
To prohibit depository institutions from assessing overdraft and nonsufficient 
fund fees during the novel coronavirus crisis and other disasters, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 21, 2020 
Mr. CICILLINE (for himself and Mrs. CAROLYN B. MALONEY of New York) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To prohibit depository institutions from assessing overdraft 
and nonsufficient fund fees during the novel coronavirus 
crisis and other disasters, 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 ‘‘Stop Overdraft Profit-
eering during COVID–19 Emergency Act of 2020’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) Overdraft coverage is a form of short-term 
credit that depository institutions market for con-
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sumer transaction accounts. Historically, depository 
institutions covered overdrafts for a fee on an ad hoc 
basis. 
(2) With the growth in specially designed soft-
ware programs, and in consumer use of debit cards, 
overdraft coverage for a fee has become more preva-
lent. 
(3) Many depository institutions market a 
range of overdraft options but aggressively encour-
age consumers to consent to the most expensive op-
tion, where a high flat fee is collected for each indi-
vidual overdraft transaction. 
(4) Many depository institutions— 
(A) collect a high flat fee, including for 
small dollar transactions, each time the institu-
tion covers an overdraft, impose multiple over-
draft coverage fees within a single day, and 
charge additional fees for each day during 
which the account remains overdrawn; and 
(B) charge unreasonable nonsufficient fees. 
(5) Such abusive practices in connection with 
overdraft coverage fees and nonsufficient fees have 
deprived consumers of meaningful options and 
placed significant financial burdens on low- and 
moderate-income consumers. 
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(6) During the public health and financial crisis 
caused by the novel coronavirus, consumers need re-
lief from such abusive practices more than ever be-
fore. 
(b) PURPOSE.—It is the purpose of this Act to pro-
tect consumers by eliminating abusive overdraft coverage 
fees, nonsufficient fund fees, and practices relating to the 
assessment of those fees during covered periods. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) CHECK.—The term ‘‘check’’— 
(A) has the meaning given the term in sec-
tion 3(6) of the Check Clearing for the 21st 
Century Act (12 U.S.C. 5002(6)); and 
(B) does not include a traveler’s check. 
(2) CHECKING ACCOUNT PENALTY FEE.—The 
term ‘‘checking account penalty fee’’ means a non-
sufficient fund fee or an overdraft coverage fee. 
(3) CONSUMER.—The term ‘‘consumer’’ has the 
meaning given the term in section 103(i) of the 
Truth in Lending Act (15 U.S.C. 1602(i)). 
(4) CONSUMER REPORTING AGENCY.—The term 
‘‘consumer reporting agency’’ has the meaning given 
the term in section 603 of the Fair Credit Reporting 
Act (15 U.S.C. 1681a). 
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(5) COVERED PERIOD.—The term ‘‘covered pe-
riod’’ means— 
(A) the period that begins 1 day after the 
date on which a major disaster is declared by 
the President under section 401 of the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5170), where assistance 
is authorized under section 408 of that Act (42 
U.S.C. 5174), and ending 120 days after the 
end of the incident period for that disaster; or 
(B) the period that begins 1 day after the 
date on which the President determines an 
emergency exists under section 501(b) of the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5191(b)) and 
simultaneously covers all States for a single in-
cident, event, or emergency and ending 120 
days after the end of the incident period for 
that emergency. 
(6) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the same meaning as in 
clauses (i) through (vi) of section 19(b)(1)(A) of the 
Federal Reserve Act (12 U.S.C. 461(b)(1)(A)). 
(7) NONSUFFICIENT
FUND
FEE.—The term 
‘‘nonsufficient fund fee’’ means a fee or charge as-
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sessed in connection with an overdraft for which a 
depository institution declines payment. 
(8) 
OVERDRAFT.—The 
term 
‘‘overdraft’’ 
means, in a withdrawal by check or other debit from 
a consumer transaction account in which there are 
insufficient or unavailable funds in the account to 
cover such check or debit, the amount of such with-
drawal that exceeds the available funds in the ac-
count. 
(9) OVERDRAFT COVERAGE.—The term ‘‘over-
draft coverage’’ means the payment of a check pre-
sented or other debit posted against a consumer 
transaction account by the depository institution in 
which such account is held, even though there are 
insufficient or unavailable funds in the account to 
cover such checks or other debit. 
(10) OVERDRAFT COVERAGE FEE.—The term 
‘‘overdraft coverage fee’’ means any fee or charge 
assessed in connection with overdraft coverage, or in 
connection with any negative account balance that 
results from overdraft coverage, excluding— 
(A) a periodic rate in connection with an 
extension of credit through an overdraft line of 
credit program; or 
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(B) a fee or charge imposed in connection 
with any transfer from an account linked to an-
other transaction account. 
(11) OVERDRAFT
COVERAGE
PROGRAM.—The 
term ‘‘overdraft coverage program’’ means a service 
under which a depository institution assesses an 
overdraft coverage fee for overdraft coverage. 
(12) 
TRANSACTION
ACCOUNT.—The 
term 
‘‘transaction account’’ has the meaning given the 
term in section 19(b)(1)(C) of the Federal Reserve 
Act (12 U.S.C. 461(b)(1)(C)). 
SEC. 4. CHECKING ACCOUNT PENALTY FEES. 
(a) PROHIBITION.— 
(1) IN GENERAL.—During a covered period, no 
depository institution may assess a checking account 
penalty fee for any transaction, including a trans-
action at an automated teller machine, a 1-time 
debit card transaction, a transaction that involves 
the use of a check, or an automatic recurring pay-
ment. 
(2) CORRECTION.—If a depository institution 
assesses a checking account penalty fee during a 
covered period in violation of paragraph (1), the de-
pository institution shall be considered to be in com-
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pliance with that paragraph if the depository institu-
tion promptly reverses that assessment. 
(b) REPORTS
TO CONSUMER REPORTING AGEN-
CIES.—During a covered period, no depository institution 
may report negative information regarding the use of over-
draft coverage by a consumer to any consumer reporting 
agency. 
(c) LIMITATION WITH RESPECT TO STATE-SPECIFIC 
DISASTERS.—With respect to a major disaster described 
under section 3(5)(A), this section shall only apply to a 
customer of a depository institution who is a resident of 
the State or Tribe where the major disaster was declared. 
(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed as prohibiting a depository institu-
tion, during a covered period, from retaining the discretion 
to pay, without assessing a checking account penalty fee, 
an overdraft incurred by a consumer. 
Æ 
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