Bill to Curb Excessive Overdraft and Non-Sufficient Fees Passes House

The Pennsylvania House of Representatives has passed legislation sponsored by state Rep. Ben Sanchez, D-Montgomery, to protect working families and seniors from excessive overdraft and nonsufficient fund fees. The bill now moves to the Senate for consideration.

“In a time when every dollar counts, Pennsylvanians shouldn’t be blindsided by unfair fees,” Sanchez said. “This bill puts fairness first and gives people a better chance to stay ahead financially.”

House Bill 1553, also known as the Protecting Your Accounts Act, would cap overdraft and non-sufficient funds fees at $15 or the actual cost of processing a transaction, whichever is lower, and prevent penalties when a transaction is simply declined.

“When the federal Consumer Financial Protection Bureau proposed similar changes, it estimated an average annual savings of $225 per person,” Sanchez said. “That’s meaningful relief, especially as families face rising costs across the board.

“In 2024 alone, two major banks collected over $1 billion in overdraft fees,” Sanchez said. “That’s not a service—it’s exploitation. We need to restore trust that financial institutions are here to safeguard, not drain, people’s hard-earned money.”

As the bill advances to the Senate, Sanchez called on lawmakers from both parties to support commonsense protections for Pennsylvania consumers.

The passed the House on a party line vote ( Democrats 102  to Republicans 101)  with no Republicans supporting the measure.