To amend the Expedited Funds Availability Act to redress imbalances between the faster withdrawals permitted under the Check 21 Act and the slower rates for crediting deposits, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Checking Account Fairness 
Act''.

SEC. 2. ADJUSTMENT OF CHECK HOLD PERIODS REQUIRED.

    (a) In General.--Section 603(d) of the Expedited Funds Availability 
Act (12 U.S.C. 4002(d)) is amended by adding at the end the following 
new paragraph:
            ``(3) Coordination with check clearing for the 21st century 
        act.--
                    ``(A) In general.--The Board shall prescribe 
                regulations under paragraph (1)--
                            ``(i) to reduce the time periods under 
                        subsections (a), (b), or (e), in accordance 
                        with the requirements of paragraph (1), to take 
                        into account the time within which any 
                        receiving institution can reasonably expect to 
                        learn of the nonpayment of most items for each 
                        category of checks under the Checking Clearing 
                        for the 21st Century Act or the regulations 
                        implementing such Act; and
                            ``(ii) to eliminate distinctions between 
                        the schedules established under subsections 
                        (a), (b), or (e) if the Board finds that such 
                        distinctions no longer have any significance 
                        for any category of checks under the Checking 
                        Clearing for the 21st Century Act or the 
                        regulations implementing such Act.
                    ``(B) Paragraph (2) adjustments.--The Board shall, 
                by regulation, eliminate the extension provided under 
                paragraph (2) for deposits of any category of checks if 
                the Board finds that the extension has no substantial 
                usefulness under the Checking Clearing for the 21st 
                Century Act or the regulations implementing such 
                Act.''.
    (b) Regulations.--The Board shall prescribe the regulations 
required under the amendment made by subsection (a) in final form 
before the end of the 6-month period beginning on the date of the 
enactment of this Act.

SEC. 3. AMENDMENTS RELATING TO CHECKING ACCOUNT CONSUMERS.

    (a) Deposits at Proprietary ATMs.--Section 603(a)(2) of the 
Expedited Funds Availability Act (12 U.S.C. 4002(a)(2)) is amended--
            (1) in subparagraphs (B)(ii) and (C)(ii), by inserting ``or 
        is deposited at a proprietary ATM'' before the semicolon at the 
        end of each such subparagraph; and
            (2) in subparagraph (E), by inserting ``, or a check 
        deposited at a proprietary ATM,'' after ``deposited in a branch 
        of a depository institution''.
    (b) Limitation on Certain Fees During Check Hold Period.--Section 
607 of the Expedited Funds Availability Act (12 U.S.C. 4006) is amended 
by adding at the end the following new subsection:
    ``(f) Limitation on Certain Fees During Check Hold Period.--If a 
receiving depository institution has received a provisional or final 
settlement with respect to a check deposited in an account at the 
depository institution and such depository institution has not yet made 
the proceeds of the deposit available to the accountholder, the 
receiving depository institution may not assess any fee for an 
overdraft, or any fee associated with the payment of an overdraft, that 
would not have occurred if such funds so deposited were available.''.
    (c) Credits Required to Be Posted Before Debits.--Section 607 of 
the Expedited Funds Availability Act (12 U.S.C. 4006) is amended by 
inserting after subsection (f) (as added by subsection (b) of this 
section) the following new subsection:
    ``(g) Order of Posting.--In the process of posting credits and 
debits against a checking account used primarily for personal, family, 
or household purposes after the close of any business day, the 
receiving depository institution shall credit all deposits to the 
account before debiting any check drawn on the account and presented to 
the depository institution for payment.''.
    (d) Saturdays May Be Treated as Business Days.--Section 602(3) of 
the Expedited Funds Availability Act (12 U.S.C. 4001(3)) is amended by 
adding at the end the following new sentence: ``For purposes of this 
title, however, Saturday shall be treated as a business day in the 
calculation of any period within which funds deposited in an account at 
a receiving depository institution are required be made available under 
this title, if with respect to checks received by the depository 
institution for which it is the originating institution, the depository 
institution debits accounts on Saturdays for such checks.''.
    (e) Reduction in Check Holds for Nonlocal Check Deposits.--Section 
603(b)(2) of the Expedited Funds Availability Act (12 U.S.C. 
4002(b)(2)) is amended by striking ``not more than 4 business days 
shall intervene between'' and inserting ``funds shall be made available 
on the 2nd business day after''.
    (f) Adjustment for Inflation for Large Check Limitation.--
            (1) In general.--Section 604(a)(3) of the Expedited Funds 
        Availability Act (12 U.S.C. 4003(a)(3)) is amended by striking 
        ``$5,000'' each place such term appears and inserting 
        ``$7,500''.
            (2) Clerical amendment.--The paragraph heading for section 
        604(a)(3) of the Expedited Funds Availability Act is amended by 
        striking ``$5,000'' and inserting ``$7,500''.
    (g) Adjustment for Small Deposit Availability.--
            (1) In general.--Section 603(a)(2)(D) of of the Expedited 
        Funds Availability Act (12 U.S.C. 4002(a)(2)(D)) is amended by 
        striking ``$100'' and inserting ``$500''.
            (2) Technical and conforming amendment.--The heading for 
        subparagraph (C) of section 603(b)(3) of the Expedited Funds 
        Availability Act (12 U.S.C. 4002(b)(3)(C)) is amended by 
        striking ``$100 availability'' and inserting ``Coordination 
        with other amount available''.
    (h) Fees for Services not Requested.--Section 607 of the Expedited 
Funds Availability Act (12 U.S.C. 4006) is amended by inserting after 
subsection (g) (as added by subsection (c) of this section) the 
following new subsection:
    ``(h) Fees for Services not Requested.--No depository institution 
may impose any fee for paying any check drawn on an account in spite of 
a lack of sufficient funds in the account to pay such check or any 
similar activity (commonly referred to as `bounce protection') unless 
the accountholder has affirmatively requested such service.''.
    (i) Clarification of Preemption.--Section 608 of the Expedited 
Funds Availability Act (12 U.S.C. 4007) is amended--
            (1) in subsection (b)--
                    (A) by inserting ``or (c)'' after ``subsection 
                (a)''; and
                    (B) by inserting ``, but only to the extent of any 
                such inconsistency'' before the period at the end; and
            (2) by adding at the end the following new subsection:
    ``(c) Clarification of Inconsistency.--A State law shall not be 
construed as inconsistent with this title, or any regulation prescribed 
under this title, if the protection such law affords the consumer by 
such law is greater than the protection afforded by this title. For 
purposes of determining congressional intent with respect to 
preemption, the purpose of this title shall be construed to be the 
establishment of a minimum basis of protection for the consumer and not 
the creation of a uniform national rule.''.

SEC. 4. RECREDIT FOR ALL CONSUMERS UNLESS SUBSTITUTE CHECKS ARE 
              PROVIDED WITHOUT COST UPON REQUEST.

    Section 7(b) of the Checking for the 21st Century Act (12 U.S.C. 
5006(b)) is amended by adding at the end the following new paragraph:
            ``(3) Fees for substitute checks.--If any bank that holds 
        the account of a consumer imposes any fee for producing a copy 
        of a substitute check for such consumer with respect to such 
        account, the expedited recredit process established under this 
        section shall be available for all charges initiated by check 
        against any such account regardless of whether a substitute 
        check was involved or was provided to the consumer.''.

Summary: Consumer Checking Account Fairness Act - Amends the Expedited Funds Availability Act to direct the Board of Governors of the Federal Reserve System to prescribe regulations to: (1) reduce the expedited funds availability time periods to take into account the time within which any receiving institution can reasonably expect to learn of the nonpayment of most items for each category of checks under the Checking Clearing for the 21st Century Act (Check 21 Act) or its implementing regulations; and (2) eliminate distinctions between the time period schedules if the Board finds that they no longer have any significance for any category of checks under such Act or regulations.

Extends the next business day availability requirement to funds deposited at a proprietary ATM.

Sets a limit upon certain overdraft fees imposed during a check hold period.

Requires a depository institution to credit all deposits to a consumer checking account before debiting any check drawn on the account and presented for payment.

Requires that Saturday be treated as a business day in the calculation of any period within which funds deposited in an account are required to be made available if the depository institution debits accounts on Saturdays for checks received.

Reduces from four business days to two business days the mandatory check hold period on funds deposited by nonlocal checks.

Prohibits a depository institution from imposing a fee for paying any check drawn on an account which lacks sufficient funds (bounce protection) unless the accountholder has requested check protection service.

Amends the Check 21 Act to provide that if a bank that holds the account of a consumer imposes any fee for producing a copy of a substitute check, the expedited recredit process shall be available for all charges initiated by check against the account regardless of whether a substitute check was involved or provided to the consumer.