Hard Lobbying to Moderate Legislation on Overdrafts

Implications: Recently introduced legislation on overdraft protection would impose significant burdens on financial institutions, and would impair the use of ATM networks and require changes in current business models.  The banking lobby is making a strong case that the bill needs to be modified.

Analysis: Legislation introduced by Congresswoman Maloney, Chair of the House Subcommittee on Financial Institutions, would create administrative burdens on financial services companies and would require significant changes in current business models.  The banking industry, and significantly, the credit union industry, is making a strong push to have the legislation revised before it is reported to the full House.  Chief concerns relate to the impact of the bill on the use of ATM machines, especially those located in another State.  If these changes are not accepted, financial institutions will experience significant costs and business inefficiencies.