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HFSC drops NAFCU-opposed Overdraft Protection Act from markup
The House Financial Services Committee pulled the NAFCU-opposed Overdraft Protection Act during its rescheduled markup Wednesday. NAFCU has long advocated against the bill, as it would significantly limit overdraft protection programs and the ability to assess nonsufficient fund fees (NSF).
Of note, prior to the markup, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the Committee reiterating that credit unions have a focus on the financial health and well-being of their members through many alternative products and services, while cautioning that any legislative efforts to eliminate or limit overdraft protection programs would likely result in significant negative impacts on borrowers and credit unions.
The Committee also discussed the Close the Industrial Loan Company (ILC) Loophole Act, bipartisan legislation introduced by Reps. Chuy Garcia, D-Ill., and Lance Gooden, R-Texas. Of note, in the letter Thaler also referenced NAFCU’s ongoing support for this legislation, as it would help stop ILCs from taking advantage of the current ILC charter that helps them gain more access to the U.S. financial system. The association also joined a coalition letter to the Committee from various financial organizations and consumer groups in support of the bill. The Committee plans to vote on this legislation today.
NAFCU will continue to monitor these bills and will work with Congress to ensure credit unions and their members retain the right to use overdraft protection programs.