Texas House Bill HB2946

Texas 2009 - 81st Regular

Caption

Relating to a financial institution's action regarding certain withdrawals and deposits.

Notes

It is important to note that the proposed changes will only apply to deposit contracts or written agreements entered into or renewed after September 1, 2009, meaning accounts established before this date would continue to adhere to the previous regulations.

Impact

The introduction of HB2946 is expected to have a significant impact on state banking laws by reinforcing consumer protections. With these measures in place, account holders will experience improved transparency and fairness in how banks assess deposits against withdrawals, particularly concerning fees associated with overdrafts. The requirement that banks must consider the timing of deposits and withdrawals could potentially reduce instances where customers incur fees due to the timing discrepancies between their transactions and when the bank processes them.

Summary

House Bill 2946 seeks to amend the Finance Code of Texas by establishing specific provisions regarding the treatment of deposits and withdrawals by financial institutions. The bill stipulates that deposits made by an account holder should be credited to their account before considering any withdrawals made on the same business day. This measure aims to protect consumers from overdraft fees or insufficient funds charges if there are sufficient funds in the account on the day the bank attempts to withdraw funds. Essentially, this legislation is designed to enhance clarity and fairness in banking practices related to deposits and withdrawals.

Contention

While supporters of HB2946 argue that these changes are necessary for protecting consumers, there may be concerns raised by financial institutions regarding how these new regulations could affect their operational procedures. Banking representatives may contend that the bill places undue restrictions on how they manage account transactions, which could result in administrative burdens or complications in their payment processing systems. Thus, stakeholders from both sides might engage in discussions about the balance between consumer protection and the operational viability for banks.