HB 1553 — An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, providing for overdraft protections for customers and members of banking institutions and credit unions.

PRINTER'S NO.   1835

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1553
                                                  Session of
                                                    2025

     INTRODUCED BY SANCHEZ, GIRAL, BURGOS, HOWARD, HILL-EVANS,
        HANBIDGE AND MAYES, JUNE 4, 2025

     REFERRED TO COMMITTEE ON COMMERCE, JUNE 4, 2025


                                       AN ACT
 1   Amending Title 7 (Banks and Banking) of the Pennsylvania
 2      Consolidated Statutes, providing for overdraft protections
 3      for customers and members of banking institutions and credit
 4      unions.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Title 7 of the Pennsylvania Consolidated Statutes
 8   is amended by adding a part to read:
 9                                    PART III
10                              CONSUMER PROTECTIONS
11   Chapter
12      71.     Overdraft Protections for Customers of Banking
13             Institutions
14      73.     Overdraft Protections for Members of Credit Unions
15                                   CHAPTER 71
16                            OVERDRAFT PROTECTIONS FOR
17                     CUSTOMERS OF BANKING INSTITUTIONS
18   Sec.
19   7101.    Definitions.
 1   7102.    Overdraft protections for customers.
 2   7103.    Fee transparency.
 3   § 7101.    Definitions.
 4      The following words and phrases when used in this chapter
 5   shall have the meanings given to them in this section unless the
 6   context clearly indicates otherwise:
 7      "Banking institution."       Any of the following:
 8             (1)    A State-chartered bank, savings bank or bank and
 9      trust company.
10             (2)    A national bank or federally chartered savings bank.
11             (3)    A federally chartered or State-chartered savings
12      association.
13             (4)    A subsidiary of any of the entities listed under
14      this definition.
15      "Customer."       A customer of a banking institution.
16      "Fee."       A nonsufficient funds fee or an overdraft fee.
17      "Nonsufficient funds fee."       A fee resulting from the
18   initiation of a transaction that exceeds a customer's available
19   account balance.
20      "Overdraft fee."       A fee resulting from the processing of a
21   transaction that exceeds a customer's available account balance.
22      "Overdraft transaction."       A check, written order or
23   electronic debit presented against insufficient funds or
24   uncollected balances in a customer's account, which is paid by
25   the banking institution.
26   § 7102.    Overdraft protections for customers.
27      (a)    Notice requirements.--A banking institution shall
28   provide a notice to a customer each time the banking institution
29   charges a fee. The notice shall meet all of the following
30   requirements:

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 1             (1)   The notice shall be provided to the customer using a
 2      communication method designated by the customer for receiving
 3      this type of notice.
 4             (2)   The notice shall be provided on the same business
 5      day when the transaction that resulted in the fee occurred,
 6      unless it is not feasible to provide the notice that day, in
 7      which case the notice shall be provided on the next business
 8      day.
 9             (3)   The notice shall contain all of the following:
10                   (i)    The date of the transaction.
11                   (ii)    The type of transaction.
12                   (iii)    Whether the transaction was declined or
13             processed.
14                   (iv)    If applicable, the amount of the overdraft that
15             results from the transaction.
16                   (v)    If applicable, the amount necessary to return
17             the account to a positive balance.
18                   (vi)    If applicable, the consequences of not
19             returning the account to a positive balance within a
20             certain time frame.
21                   (vii)    If applicable, the amount of time the customer
22             has to return the account to a positive balance to avoid
23             the consequences specified under subparagraph (vi).
24      (b)    Multiple account holders.--If an account subject to a
25   fee has more than one account holder, the provision of the
26   notice under subsection (a) to any account holder shall be
27   sufficient to meet the requirements under subsection (a).
28      (c)    Fee limitation.--
29             (1)   Beginning on January 1 following the effective date
30      of this paragraph, a banking institution may not charge a fee

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 1      exceeding $15, or the cost of processing the transaction,
 2      whichever is lower.
 3             (2)    A banking institution may not impose more than three
 4      nonsufficient funds fees on a customer's account in a single
 5      calendar day.
 6      (d)     Additional charges prohibited.--A banking institution
 7   may not impose any charge on an overdraft transaction other than
 8   the overdraft fee or nonsufficient funds fee.
 9      (e)     Declined transactions.--A banking institution may not
10   charge a customer a nonsufficient funds fee when the customer's
11   attempt to initiate a transaction is declined.
12   § 7103.    Fee transparency.
13      A banking institution with a publicly accessible Internet
14   website shall conspicuously post a list of each fee charged by
15   the banking institution on the publicly accessible Internet
16   website.
17                                   CHAPTER 73
18                           OVERDRAFT PROTECTIONS FOR
19                            MEMBERS OF CREDIT UNIONS
20   Sec.
21   7301.    Definitions.
22   7302.    Overdraft protections for members.
23   7303.    Fee transparency.
24   § 7301.    Definitions.
25      The following words and phrases when used in this chapter
26   shall have the meanings given to them in this section unless the
27   context clearly indicates otherwise:
28      "Credit union."      A State or federally chartered credit union.
29      "Fee."       A nonsufficient funds fee or an overdraft fee.
30      "Member."       A member of a credit union.

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 1      "Nonsufficient funds fee."        A fee resulting from the
 2   initiation of a transaction that exceeds a member's available
 3   account balance.
 4      "Overdraft fee."        A fee resulting from the processing of a
 5   transaction that exceeds a member's available account balance.
 6      "Overdraft transaction."        A check, written order or
 7   electronic debit presented against insufficient funds or
 8   uncollected balances in a member's account, which is paid by the
 9   credit union.
10   § 7302.    Overdraft protections for members.
11      (a)    Notice requirements.--A credit union shall provide a
12   notice to a member each time the credit union charges a fee. The
13   notice shall meet all of the following requirements:
14             (1)   The notice shall be provided to the member using a
15      communication method designated by the member for receiving
16      this type of notice.
17             (2)   The notice shall be provided on the same business
18      day when the transaction that resulted in the fee occurred,
19      unless it is not feasible to provide the notice that day, in
20      which case the notice shall be provided on the next business
21      day.
22             (3)   The notice shall contain all of the following:
23                   (i)    The date of the transaction.
24                   (ii)    The type of transaction.
25                   (iii)    Whether the transaction was declined or
26             processed.
27                   (iv)    If applicable, the amount of the overdraft that
28             results from the transaction.
29                   (v)    If applicable, the amount necessary to return
30             the account to a positive balance.

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 1                   (vi)    If applicable, the consequences of not
 2             returning the account to a positive balance within a
 3             certain time frame.
 4                   (vii)    If applicable, the amount of time the member
 5             has to return the account to a positive balance to avoid
 6             the consequences specified under subparagraph (vi).
 7      (b)    Multiple account holders.--If an account subject to a
 8   fee has more than one account holder, the provision of the
 9   notice under subsection (a) to any account holder shall be
10   sufficient to meet the requirements under subsection (a).
11      (c)    Fee limitation.--
12             (1)   Beginning on January 1 following the effective date
13      of this paragraph, a credit union may not charge a fee
14      exceeding $15, or the cost of processing the transaction,
15      whichever is lower.
16             (2)   A credit union may not impose more than three
17      nonsufficient funds fees on a member's account in a single
18      calendar day.
19      (d)    Additional charges prohibited.--A credit union may not
20   impose any charge on an overdraft transaction other than the
21   overdraft fee or nonsufficient funds fees.
22      (e)    Declined transactions.--A credit union may not charge a
23   member a nonsufficient funds fee when the member's attempt to
24   initiate a transaction is declined.
25   § 7303.    Fee transparency.
26      A credit union with a publicly accessible Internet website
27   shall conspicuously post a list of each fee charged by the
28   credit union on the publicly accessible Internet website.
29      Section 2.      This act shall take effect in 180 days.



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