Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1553

Introduced
6/4/25  
Refer
6/4/25  
Refer
6/11/25  
Report Pass
6/25/25  
Refer
6/26/25  
Report Pass
6/30/25  
Engrossed
6/30/25  

Caption

Providing for overdraft protections for customers and members of banking institutions and credit unions.

Impact

This legislative proposal represents a significant shift in how banking institutions and credit unions can impose fees on their customers. By mandating notifications for each fee and establishing a fee cap, the bill aims to foster greater transparency in banking practices. It could alleviate financial pressures on consumers by limiting the cost of transactions when overdrafts occur, potentially leading to more equitable banking practices. The parameters set forth in HB1553 would represent a clear legislative move toward protecting the interests of consumers in the banking sector.

Summary

House Bill 1553 seeks to amend Title 7 of the Pennsylvania Consolidated Statutes to enhance consumer protections by providing specific guidelines for overdraft protections related to customers of banking institutions and members of credit unions. The core of the bill centers around ensuring that consumers are adequately notified of any fees charged due to overdrafts, including a requirement that notices be sent on the same business day as the transaction that caused the fee. Furthermore, the bill establishes a cap on overdraft and nonsufficient funds fees, limiting them to $15 or the actual processing cost, whichever is lower.

Sentiment

The sentiment surrounding HB1553 is predominantly positive among consumer advocacy groups, who see it as a step forward in protecting individuals from excessive fees that can exacerbate financial hardship. However, there may be apprehensions from banking institutions, worried about the implications of reduced fees on their revenue and operational processes. Overall, supporters view the bill as an important measure to create a more consumer-friendly banking environment.

Contention

Despite the favorable reception among many stakeholders, there may be contention regarding the potential impact of the fee limitations on the financial stability of banking institutions. Critics within the banking industry might argue that such limitations could constrain their ability to manage risk and might lead to a reevaluation of their fee structures, potentially resulting in even higher costs for consumers in other areas. The bill raises important discussions about balancing consumer protection with the operational realities faced by financial institutions.

Companion Bills

No companion bills found.

Previously Filed As

PA HB2066

Providing for financial institutions and fiduciaries.

PA HB2064

Providing for financial institutions.

PA HB2398

In transfers of credits between institutions of higher education, further providing for definitions and for duties of public institutions of higher education, providing for guaranteed admission, for reports to General Assembly and for dispute resolution and further providing for Transfer and Articulation Oversight Committee, for duties of department and for applicability; in higher education accountability and transparency, further providing for definitions and providing for student fee transparency; and providing for institutions of higher education and Dual Credit Innovation and Equity Grant Program.

PA HB1077

In responsible utility customer protection, further providing for declaration of policy and for definitions, providing for security deposits, further providing for payment arrangements, for termination of utility service, for reconnection of service, for complaints filed with commission, for public utility duties, for reporting of recipients of public assistance, for reporting to General Assembly and Governor, for nonapplicability and for expiration.

PA SB1248

Providing for institutions of higher education.

PA HB675

In municipal authorities, providing for utility reconnection fees; and, in responsible utility customer protection, further providing for termination of utility service and for reconnection of service.

PA SB30

Providing for student loan debt data collection and report, for procedures for student loans, for disclosure of higher education costs, for a student loan ombudsman, for higher education assistance by employers, for duties of the Department of Education, Department of Banking and Securities and Department of Revenue; establishing the Student Loan Refinancing Program; authorizing the Pennsylvania Higher Education Assistance Agency to issue bonds to fund the Student Loan Refinancing Program; establishing the Student Loan Refinancing Fund; providing for student loan debt tax credit, for application for tax credit, for taxpayer eligibility, for carryover and carryback, for outreach and marketing, for guidelines, for employer incentive for higher education assistance tax credit, for application for tax credits and for carryover, carryback and assignment of tax credits; and imposing penalties.

PA SB1017

In responsible utility customer protection, further providing for declaration of policy, for definitions, for cash deposits and household information requirements, for payment arrangements, for termination of utility service, for reconnection of service, for public utility duties, for reporting of recipients of public assistance, for liens by city natural gas distribution operations, for reporting to General Assembly and Governor and for nonapplicability and repealing provisions relating to expiration.

PA SB967

Establishing portable benefits and protections for app-based workers.

PA HB926

Providing for a requirement for commercial establishments to disclose the use and collection of biometric identifier information and providing for a private cause of action.

Similar Bills

CA SB1415

Financial Institutions Law: annual report: overdraft.

CA SB1075

Credit unions: overdraft and nonsufficient funds fees.

CA AB2017

Banks and credit unions: nonsufficient funds fees.

CT SB01034

An Act Concerning Requirements For Deposit Accounts.

CT HB05216

An Act Concerning Low-cost Bank Accounts.

MS SB2496

Mississippi Earned Wage Access Services Act; enact.

NY A08319

Provides that charges imposed by certain state chartered banking institutions in connection with a check or other written order drawn on insufficient funds shall not exceed the greater of five dollars or the pro rata share of such state chartered banking institution's total direct costs and charge-off losses for providing non-covered overdraft credit.

MS HB1307

Mississippi Earned Wage Access Services Act; create.