How HB 1553 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes new regulations for overdraft protections for customers of banking institutions and members of credit unions in Pennsylvania.

• Title 7

  PART III CONSUMER PROTECTIONS Chapter 71. Overdraft Protections for Customers of Banking Institutions 73. Overdraft Protections for Members of Credit Unions

  Adds a new part to the Pennsylvania Consolidated Statutes specifically addressing overdraft protections.

• Chapter 71

  CHAPTER 71 OVERDRAFT PROTECTIONS FOR CUSTOMERS OF BANKING INSTITUTIONS

  Introduces a chapter dedicated to overdraft protections for banking institution customers.

• Section 7101

  Definitions.

  Establishes definitions relevant to overdraft protections for customers of banking institutions.

• Section 7102

  Overdraft protections for customers.

  Sets forth requirements for overdraft protections, including notice requirements and fee limitations.

• Section 7102(a)

  Notice requirements.--A banking institution shall provide a notice to a customer each time the banking institution charges a fee.

  Requires banking institutions to notify customers whenever fees are charged.

• Section 7102(c)(1)

  Beginning on January 1 following the effective date of this paragraph, a banking institution may not charge a fee exceeding $15, or the cost of processing the transaction, whichever is lower.

  Limits the amount of overdraft fees that can be charged by banking institutions.

• Section 7102(c)(2)

  A banking institution may not impose more than three nonsufficient funds fees on a customer's account in a single calendar day.

  Restricts the number of nonsufficient funds fees that can be charged per day.

• Section 7103

  Fee transparency.

  Requires banking institutions to prominently post a list of fees on their websites.

• Chapter 73

  CHAPTER 73 OVERDRAFT PROTECTIONS FOR MEMBERS OF CREDIT UNIONS

  Introduces a chapter dedicated to overdraft protections for credit union members.

• Section 7301

  Definitions.

  Establishes definitions relevant to overdraft protections for members of credit unions.

• Section 7302

  Overdraft protections for members.

  Sets forth requirements for overdraft protections for credit union members, mirroring those for banking institution customers.

• Section 7302(a)

  A credit union shall provide a notice to a member each time the credit union charges a fee.

  Mandates credit unions to notify members whenever fees are charged.

• Section 7302(c)(1)

  Beginning on January 1 following the effective date of this paragraph, a credit union may not charge a fee exceeding $15, or the cost of processing the transaction, whichever is lower.

  Limits the amount of overdraft fees that can be charged by credit unions.

• Section 7302(c)(2)

  A credit union may not impose more than three nonsufficient funds fees on a member's account in a single calendar day.

  Restricts the number of nonsufficient funds fees that can be charged per day by credit unions.

• Section 7303

  Fee transparency.

  Requires credit unions to prominently post a list of fees on their websites.