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| NAFCU-Opposed Overdraft Protection Act advanced by House Committee |
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The House Financial Services Committee concluded its markup Thursday where the committee passed by a 27-22 vote the NAFCU-opposed Overdraft Protection Act, which would significantly limit overdraft protection programs and hinder the ability to assess nonsufficient fund (NSF) fees, as well as the Expanding Access to Credit through Consumer-Permissioned Data Act by a 28-23 vote.
NAFCU will continue to engage members of Congress to highlight the detrimental impact the Overdraft Protection Act will have on credit unions, prior to a full-vote on the House floor.
Of note, the committee Wednesday also voted to pass the NAFCU-backed Credit Union Board Modernization Act, as reported on Thursday in NAFCU Today, which would amend Federal Credit Union Act language that currently requires credit union boards to meet once a month, to instead require the board to meet no less than six times per year.
Prior to the markup, NAFCU Senior Vice President of Government Affairs Greg Mesack wrote to the committee explaining the association's thoughts on how each bill would impact credit unions.
In the letter, Mesack called the effects of the Credit Union Board Modernization Act a “welcome modernization that will give credit unions more flexibility and free up resources,” for their members. He also highlighted the association’s continued opposition for the Overdraft Protection Act, reiterating NAFCU’s main concern with new restrictions and the failure to recognize the “opt-in” feature many overdraft products have today.
Regarding the Expanding Access to Credit through Consumer-Permissioned Data Act, Mesack expressed support for the intent of the bill but highlighted concerns that the legislation does not provide enough clarity and could require significant changes.
NAFCU will continue to keep credit unions up-to-date on the latest from the Hill via NAFCU Today.
Copyright 2022. NAFCU. (link) |
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