H.R. 5953: Protect Military and Federal Employees from Unfair Bank Fees Act

This bill, titled the Protect Military and Federal Employees from Unfair Bank Fees Act, aims to protect certain federal employees and military personnel from incurring specific fees during government shutdowns or lapses in appropriations. Here are the main points of the bill:

Prohibition of Fees on Accounts

The bill prohibits financial institutions from imposing any fees related to insufficient funds on accounts held by covered persons during times when federal appropriations are not in effect. This means that if federal employees or military personnel do not have enough money in their accounts to cover a transaction during a government shutdown, the bank cannot charge them for this issue.

Credit Card Fees

Similarly, the bill also prevents card issuers from charging late fees on credit cards for payments that are due during a covered period. If a covered person's payment is due while they are affected by a lack of appropriations for their employment, they cannot be penalized with late fees.

Definitions of Key Terms

To clarify terms used in the bill:

• Account: Defined according to the Electronic Fund Transfer Act.
• Card Issuer: Defined under the Consumer Credit Protection Act.
• Credit Card: Also defined under the Consumer Credit Protection Act, including purchase cards used by federal employees for official purposes.
• Covered Period: Refers to times when appropriations are not in effect for federal agencies.
• Covered Person: Refers to federal civil service employees, military members, or uniformed service personnel who are furloughed or working without pay during a covered period.
• Financial Institution: Defined according to the Electronic Fund Transfer Act.

Overall Impact

The intent of the bill is to alleviate financial burdens on federal workers and military personnel when federal funding is not available, ensuring that they do not face additional fees from banks or credit card companies during such periods.

Relevant Companies

• JPM (JPMorgan Chase & Co.): As one of the largest financial institutions, changes in fee structures could significantly impact its revenue from account-related fees.
• USB (U.S. Bancorp): Similar to JPMorgan, U.S. Bancorp may see an effect on its fee income from customers impacted by this bill.
• COF (Capital One Financial Corporation): As a credit card issuer, Capital One could be affected by the prohibition of late fees for covered persons.