Hinojosa withdraws as overdraft cosponsor

Nov. 24, 2009 – Rep. Rubén Hinojosa, D-Texas, last week withdrew his name from the list of cosponsors of H.R. 3904, an overdraft practices bill introduced by Rep. Carolyn Maloney, D-N.Y., to require a consumer opt-in to overdraft services and strictly limit related fees.

Hinojosa removed his name from the bill’s cosponsor list Nov. 17 but issued no statement. According to a staffer quoted in a Nov. 22 story by The Hill, a Capitol Hill newspaper, he is beginning to lean more in support of the approach taken by the Federal Reserve Board, whose recently issued final rule sets a consumer opt-in for overdraft fees on ATM and one-time debit-card transactions.

NAFCU is urging lawmakers not to move forward on legislation until the Fed’s final rule has had time to work. The rule, an amendment to the Fed’s Regulation E, has a compliance deadline of July 1 of next year.

The report said Rep. David Loebsack, D-Iowa, is also not a cosponsor and was only listed as one in error. The two removals leave the bill with 57 House cosponsors.

H.R. 3904 is similar to S.1799 introduced by Senate Banking Chairman Chris Dodd, D-Conn. The Senate bill has seven cosponsors.