CBA Statement on Passage of Misguided Overdraft Legislation

WASHINGTON, DC – Consumer Bankers Association President and CEO Lindsey Johnson issued the following statement after the House Financial Services Committee passed the Overdraft Protection Act, H.R. 4277, legislation that would dramatically restrict access to overdraft:

“Today’s passage of the Overdraft ‘Protection’ Act in the House Financial Services Committee will harm vulnerable consumers in need of emergency financing – making it more difficult to cover unexpected expenses between paychecks. This outdated legislation disregards years of bank-led, consumer-driven innovation and will take away a financial safety net many families count on in times of need. Lawmakers understand the harmful consequences of this legislation, and it is our hope they will reject any further efforts to advance this misguided proposal and instead encourage more of the innovation banks are already delivering customers in every community they serve.”

Background

CBA long has advocated for protecting consumers’ access to emergency safety net products like overdraft and has continued to amplify recent bank-led overdraft reforms this week. Specifically:

• In a new op-ed in American Banker, CBA President & CEO Lindsey Johnson urged policymakers to recognize the impact of recently unveiled bank-led overdraft innovations designed to expand choice, strengthen transparency, and lower costs for hardworking consumers.
• CBA sent a new letter to Congress reiterating longstanding opposition to H.R. 4277, legislation that would restrict access to overdraft for millions of hardworking families who knowingly use and value the product.
• CBA broke down the claims from the reality in a new blog post highlighting the consumer benefits of overdraft innovation.

To learn more about CBA’s efforts to correct misinformation and deliver the facts about how emergency safety net products like overdraft are valued by millions of consumers in times of need, click HERE.

About the Consumer Bankers Association

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.