These Senators Want to Ban Overdraft Fees During the Coronavirus Pandemic

Stress and anxiety continue to mount as the nation bears the Coronavirus outbreak that has no end in sight yet.

Financial hardships are already touching down on many Americans while the Senate still tries to come to an agreement on a stimulus package.

Many credit card companies have waived late fees and are even allowing their customers to skip a month of payments. Many states have also implemented policies that would not allow evictions to take place.

Senator Cory Booker of New Jersey is also calling for banks to not charge overdraft fees during the outbreak. Booker, along with Sen. Sherrod Brown (D-Ohio) introduced a bill over the weekend that would bar banks, credit unions and other financial institutions from charging overdraft fees until the coronavirus crisis is over.

The two want the measure to be included in the federal relief package that is currently pending in the Senate.

“Millions of hardworking Americans have been thrown into financial insecurity because of this unprecedented global pandemic. For these individuals, and those vulnerable before the outbreak, one $35 overdraft charge can lead to financial free fall,” Booker stated.

Bank overdraft fees can run around $30 to $35 if you overdraw your checking account.

“At the height of this pandemic, hardworking Americans should be protecting their health, not worrying about big banks slapping them with fees for small overdraft amounts. This bill would allow them to keep money in their pockets when they need it most,” Brown remarked.

The proposed bill would not only block banks and financial institutions from charging overdraft fees but would also block the similar “non-sufficient fund fee,” which is charged when a check bounces in any transaction.
The measure would also bar financial companies from reporting overdrafts to credit bureaus.

Bank of America and other card issuers, such as Citi, Chase, Capital One, Discover, Apple and American Express, are now offering emergency support to its consumer and small business clients.

“Our teams are ready to help clients and small businesses, and we are especially focused on the needs of those experiencing hardship due to the current situation,” said Holly O’Neill, head of consumer, small business and wealth management client care at Bank of America. “If you have been negatively impacted by coronavirus and need additional assistance related to your account please visit our website or you can give us a call.”