Excessive Overdraft Fees Bill By Montco Lawmaker Passes House

ABINGTON TOWNSHIP, PA — A bill by State Rep. Ben Sanchez that would protect working families and seniors from excessive overdraft and non-sufficient fund fees has passed the PA House.

The Pennsylvania House of Representatives recently passed the legislation sponsored by Sanchez, D-Montgomery. 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.

Sanchez represents the 153rd District, comprised of Rockledge and parts of Abington and Upper Dublin in Montgomery County.