Lack of oversight in the financial sector was a major cause of the ongoing economic crisis that caused too many Americans to suffer from unfair practices and abuses. Rep. Eshoo is committed to ensuring that consumer loan issuers, such as payday lenders and mortgage originators who have long escaped much needed oversight, have fair and transparent supervision so consumers are properly protected.

Overdraft Protection Act

In the 113th Congress, Rep. Eshoo is once again an original cosponsor of H.R. 1261, the Overdraft Protection Act. This legislation would establish important consumer safeguards on the overdraft protection fees that banks charge consumers, creating fair and transparent practices. This legislation codifies Federal Reserve rules that require depository institutions to provide consumers with the opportunity to opt-in to overdraft coverage for all transactions. It also provides strong new protections and disclosures for consumers. This is extremely important for people who live paycheck-to-paycheck, and should not be charged exorbitant overdraft fees.

Credit Cardholder’s Bill of Rights

The Credit Cardholders’ Bill of Rights was a major achievement in 2009. For the first time consumers are protected from the unwarranted retroactive rate hikes, double billing cycles, and other unfair practices exercised by too many credit card companies. The bill brings equity and rationale to our credit card system and provides immediate financial relief to millions of Americans. The legislation:

• Banned unfair rate increases and forbids abusive fees and penalties;
• Ended unwarranted penalties for cardholders who pay on time;
• Mandated greater transparency to give consumers clear information, such as requiring credit card companies to post their agreements online;
• Protected cardholders from due date gimmicks; and
• Prevented companies from using misleading terms and damaging consumer credit ratings.

The bill was signed into law in May, 2009.