HB 342 Summary

• Caps overdraft fees at $5 per transaction for checks and debit transactions with insufficient funds at banks, savings and loan associations, savings banks, and credit unions.

• Prohibits overdraft protection fees unless the consumer provides specific written consent to the overdraft program and signs a written agreement disclosing fee amounts and terms.

• Requires written agreements to include clear disclosure of transaction categories covered (including ATM and electronic transfers), repayment timeframes, circumstances when overdrafts will not be paid, and any discretionary provisions.

• Mandates fees be separately and conspicuously disclosed on periodic account statements and included in annual percentage rate calculations under the Truth in Lending Act.

• Prohibits financial institutions from representing they will cover all overdrafts on an account.