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The Pennsylvania House of Representatives has passed legislation introduced by state Rep. Ben Sanchez aimed at protecting working families and seniors from excessive overdraft and nonsufficient fund (NSF) fees.
The bill, titled the Protecting Your Accounts Act (House Bill 1553), now heads to the state Senate for further consideration.
Designed to bring fairness and transparency to personal banking, the legislation would cap overdraft and NSF fees at $15 or the actual cost of processing a transaction—whichever is lower—and prohibit penalties when a transaction is simply declined.
Sanchez emphasized the urgency of the measure, stating that in an economy where every dollar matters, Pennsylvanians deserve to be shielded from unexpected and often exploitative fees.
“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."
Citing data from the federal Consumer Financial Protection Bureau, Sanchez noted that similar regulatory changes could result in average savings of $225 per person each year—relief that would be especially meaningful as families continue to cope with rising living costs.
“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.”
Highlighting the scale of the issue, Sanchez pointed out that in 2024 alone, two major U.S. banks collected more than $1 billion in overdraft fees.
As the bill moves to the Senate, Sanchez urged bipartisan support for what he described as commonsense protections for Pennsylvania consumers.
He represents the 153rd District, which includes Rockledge and parts of Abington and Upper Dublin in Montgomery County.
