Connecticut House Bill HB06452

Connecticut 2021 Regular Session

• Introduced: 2/11/21
• Refer: 2/11/21

Caption

An Act Requiring Connecticut Banks To Report To The Banking Commissioner Certain Information Concerning Overdraft Fees.

Impact

If enacted, HB 6452 would have significant implications for the banking sector in Connecticut. Banks would have to implement new reporting systems to gather and report the required data to the Banking Commissioner, which may involve additional costs. Furthermore, the bill could lead to increased scrutiny of overdraft fees, potentially prompting banks to reconsider their pricing structures and policies to avoid negative public perception or regulatory action. Increasing transparency is intended to protect consumers from potentially exploitative practices associated with overdraft fees.

Summary

House Bill 6452 is an act that aims to improve the transparency of overdraft fee practices among banks in Connecticut. The bill requires banks operating in the state to report specific information each year concerning overdraft fees. This includes the total amount of overdraft fees collected, the schedule of these fees, the median fee charged, and various data on account holders' participation in overdraft services. The aim of this requirement is to enhance oversight of bank practices related to overdrafts and to provide lawmakers and the public with a clearer understanding of how these fees affect consumers.

Contention

Notable points of contention surrounding HB 6452 include worries from the banking industry about the potential administrative burdens this reporting requirement may impose. Banks may argue that the requirements could lead to increased operational costs, which could ultimately be passed on to consumers. Advocates for the bill, including consumer protection groups, maintain that such regulations are necessary to ensure fair practices and to keep banks accountable, particularly in light of concerns around how overdraft fees disproportionately affect lower-income customers.