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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
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 7 of the Pennsylvania Consolidated Statutes
is amended by adding a part to read:
PART III
CONSUMER PROTECTIONS
Chapter
71. Overdraft Protections for Customers of Banking
Institutions
73. Overdraft Protections for Members of Credit Unions
CHAPTER 71
OVERDRAFT PROTECTIONS FOR
CUSTOMERS OF BANKING INSTITUTIONS
Sec.
7101. Definitions.
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7102. Overdraft protections for customers .
7103. Fee transparency.
§ 7101. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Banking institution." Any of the following:
(1) A State-chartered bank, savings bank or bank and
trust company.
(2) A national bank or federally chartered savings bank.
(3) A federally chartered or State-chartered savings
association.
(4) A subsidiary of any of the entities listed under
this definition.
"Customer." A customer of a banking institution.
"Fee." A nonsufficient funds fee or an overdraft fee.
"Nonsufficient funds fee." A fee resulting from the
initiation of a transaction that exceeds a customer's available
account balance.
"Overdraft fee." A fee resulting from the processing of a
transaction that exceeds a customer's available account balance.
"Overdraft transaction." A check, written order or
electronic debit presented against insufficient funds or
uncollected balances in a customer's account, which is paid by
the banking institution.
§ 7102. Overdraft protections for customers.
(a) Notice requirements.-- A banking institution shall
provide a notice to a customer each time the banking institution
charges a fee. The notice shall meet all of the following
requirements:
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(1) The notice shall be provided to the customer using a
communication method designated by the customer for receiving
this type of notice.
(2) The notice shall be provided on the same business
day when the transaction that resulted in the fee occurred,
unless it is not feasible to provide the notice that day, in
which case the notice shall be provided on the next business
day.
(3) The notice shall contain all of the following:
(i) The date of the transaction.
(ii) The type of transaction.
(iii) Whether the transaction was declined or
processed.
(iv) If applicable, the amount of the overdraft that
results from the transaction.
(v) If applicable, the amount necessary to return
the account to a positive balance.
(vi) If applicable, the consequences of not
returning the account to a positive balance within a
certain time frame.
(vii) If applicable, the amount of time the customer
has to return the account to a positive balance to avoid
the consequences specified under subparagraph (vi).
(b) Multiple account holders.-- If an account subject to a
fee has more than one account holder, the provision of the
notice under subsection (a) to any account holder shall be
sufficient to meet the requirements under subsection (a).
(c) Fee limitation.--
(1) Beginning on January 1 following the effective date
of this paragraph, a banking institution may not charge a fee
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exceeding $15, or the cost of processing the transaction ,
whichever is lower.
(2) A banking institution may not impose more than three
nonsufficient funds fees on a customer's account in a single
calendar day.
(d) Additional charges prohibited.-- A banking institution
may not impose any charge on an overdraft transaction other than
the overdraft fee or nonsufficient funds fee.
(e) Declined transactions.--A banking institution may not
charge a customer a nonsufficient funds fee when the customer's
attempt to initiate a transaction is declined.
§ 7103. Fee transparency.
A banking institution with a publicly accessible Internet
website shall conspicuously post a list of each fee charged by
the banking institution on the publicly accessible Internet
website.
CHAPTER 73
OVERDRAFT PROTECTIONS FOR
MEMBERS OF CREDIT UNIONS
Sec.
7301. Definitions.
7302. Overdraft protections for members .
7303. Fee transparency.
§ 7301. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Credit union." A State or federally chartered credit union.
"Fee." A nonsufficient funds fee or an overdraft fee.
"Member." A member of a credit union.
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" Nonsufficient funds fe e." A fee resulting from the
initiation of a transaction that exceeds a member's available
account balance.
"Overdraft fee." A fee resulting from the processing of a
transaction that exceeds a member's available account balance.
"Overdraft transaction." A check, written order or
electronic debit presented against insufficient funds or
uncollected balances in a member's account, which is paid by the
credit union.
§ 7302. Overdraft protections for members.
(a) Notice requirements . -- A credit union shall provide a
notice to a member each time the credit union charges a fee. The
notice shall meet all of the following requirements:
(1) The notice shall be provided to the member using a
communication method designated by the member for receiving
this type of notice.
(2) The notice shall be provided on the same business
day when the transaction that resulted in the fee occurred,
unless it is not feasible to provide the notice that day, in
which case the notice shall be provided on the next business
day.
(3) The notice shall contain all of the following:
(i) The date of the transaction.
(ii) The type of transaction.
(iii) Whether the transaction was declined or
processed.
(iv) If applicable, the amount of the overdraft that
results from the transaction.
(v) If applicable, the amount necessary to return
the account to a positive balance.
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(vi) If applicable, the consequences of not
returning the account to a positive balance within a
certain time frame.
(vii) If applicable, the amount of time the member
has to return the account to a positive balance to avoid
the consequences specified under subparagraph (vi).
(b) Multiple account holders.-- If an account subject to a
fee has more than one account holder, the provision of the
notice under subsection (a) to any account holder shall be
sufficient to meet the requirements under subsection (a).
(c) Fee limitation.--
(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.
(2) A credit union may not impose more than three
nonsufficient funds fees on a member's account in a single
calendar day.
(d) Additional charges prohibited.-- A credit union may not
impose any charge on an overdraft transaction other than the
overdraft fee or nonsufficient funds fees.
(e) Declined transactions.--A credit union may not charge a
member a nonsufficient funds fee when the member's attempt to
initiate a transaction is declined.
§ 7303. Fee transparency.
A credit union with a publicly accessible Internet website
shall conspicuously post a list of each fee charged by the
credit union on the publicly accessible Internet website.
Section 2. This act shall take effect in 180 days.
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