House and Senate Democrats call for action against overdraft fees
WASHINGTON (NEXSTAR) — Democrats in the House and Senate says banks are taking advantage of Americans through overdraft fees.
“They are the product of years of price gouging and a punitive practice that punishes low-income consumers,” Rep. Carolyn Maloney (D-N.Y.) said.
Maloney introduced a bill limiting how many overdraft fees consumers can face in a year and says the fees they do charge must be reasonable.
“Charging $35 for a $3 cup of coffee is simply predatory,” Maloney said.
Some banks have already eliminated or reduced their fees.
“But there are still many financial institutions who have hurt those most disadvantaged consumers,” Maloney said.
Maloney expects the bill to pass the house. But Senate Democrats face a bigger challenge.
“Billions of dollars being made off of the backs of low-income families who are struggling to make it,” Sen. Cory Booker (D-N.J.) said.
Booker and Sen. Elizabeth Warren (D-Mass.) believe this bill would level the playing field.
“Big banks have to be held accountable for predatory practices that they’ve gotten away with for far too long,” Booker said.
“For the banks, overdrafts are almost pure profit,” Warren said.
Warren wants Senate Republicans to join their fight.
“Who wants to be the Republican who says ‘it’s okay for giant banks to continue to squeeze hard-working families,” Warren said.
But when asked Tuesday, Republicans leaders declined to take a position.