HR 5953
Protect Military and Federal Employees from Unfair Bank Fees Act
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Bill overview
This bill aims to protect military and federal employees from certain bank fees during periods when federal agencies are operating without full funding, often referred to as furloughs. Specifically, it prohibits card issuers and financial institutions from charging fees for insufficient funds or late payments on accounts held by these employees during these ‘covered periods.’ The bill seeks to prevent financial hardship for employees who are temporarily working without pay due to budget constraints.
Key provisions
- Prohibits fees for insufficient funds on accounts held by furloughed federal employees.
- Prevents card issuers from charging fees for late payments made by furloughed federal employees.
- Defines ‘covered period’ as any time federal agencies lack full appropriations.
- Defines ‘covered person’ as civil service, military, or uniformed service employees furloughed or excepted from furlough.
- Uses definitions from existing financial laws like the Electronic Fund Transfer Act and the Consumer Credit Protection Act.
Who is affected
- Military personnel
- Federal employees
- Financial institutions
- Card issuers
Notable changes
- Addresses financial hardship for federal employees during government shutdowns or budget crises.
- Expands upon existing protections by specifically targeting bank fees related to insufficient funds and late payments.
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Primary sponsor
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119th CONGRESS — 1st Session
H. R. 5953
IN THE HOUSE OF REPRESENTATIVES
A BILL
To prohibit card issuers and financial institutions from imposing certain fees on covered persons during any period during which appropriations are not in effect for the operations of one or more Federal agencies, and for other purposes.
This Act may be cited as the Protect Military and Federal Employees from Unfair Bank Fees Act
.
A financial institution may not impose any fee on any account held by a covered person during a covered period that relates to insufficient funds in such consumer’s account to pay or reject a debit.
A card issuer who has issued a credit card to a covered person may not impose any fee or charge on such covered person for the failure of such person to make a payment by the due date of such payment if such payment was due during a covered period.
In this section:
The term account
has the meaning given the term in section 3 of the Electronic Fund Transfer Act.
The term card issuer
has the meaning given the term in section 103 of the Consumer Credit Protection Act.
The term credit card
has the meaning given the term in section 103 of the Consumer Credit Protection Act, and includes any purchase card issued to a covered person by the Federal Government for official use.
The term covered period
means any period during which appropriations are not in effect for the operations of one or more Federal agencies.
The term covered person
means an individual employed in the civil service, the Armed Forces, or the uniformed services, as such terms are defined in section 2101 of title 5, United States Code, who was furloughed or excepted from furlough and working without pay during a covered period.
The term financial institution
has the meaning given the term in section 3 of the Electronic Fund Transfer Act.