Sec. 4. Checking account penalty fees
144 words·~1 min read·
/bill/116/s/3566/is/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
During a covered period, no depository institution may assess a checking account penalty fee for any transaction, including a transaction at an automated teller machine, a 1-time debit card transaction, a transaction that involves the use of a check, or an automatic recurring payment. If a depository institution assesses a checking account penalty fee during a covered period in violation of paragraph (1), the depository institution shall be considered to be in compliance with that paragraph if the depository institution promptly reverses that assessment.
During a covered period, no depository institution may report negative information regarding the use of overdraft coverage by a consumer to any consumer reporting agency. Nothing in this section may be construed as prohibiting a depository institution, during a covered period, from retaining the discretion to pay, without assessing a checking account penalty fee, an overdraft incurred by a consumer.