Freedom and Mobility in Consumer Banking Act - Amends the Federal Deposit Insurance Act (FDIA) to prohibit an insured depository institution from: (1) prohibiting any person from closing a checking or savings account, regardless of its balance; or (2) charging a fee to close such an account.
Requires a depository institution to close an account within 48 hours after receiving a request from the customer to do so.
Permits an account holder to request that the account be closed in person, over the phone, or by other electronic or remote means, as may be prescribed by regulation.
Sets forth financial institution procedures for closing large accounts and repaying balances, as well as notice and opportunity for accountholder repayment of overdrafts.
Prohibits a depository institution from: (1) imposing fees or charges after receiving a request to close an account, or (2) reopening an account without express account holder request.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3077 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3077
To amend the Federal Deposit Insurance Act to ensure that customers
have the right to immediately close any account at any insured
depository institutions on demand, without cost to the consumer, that
consumers receive any balance in their account immediately, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 3, 2011
Mr. Miller of North Carolina introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to ensure that customers
have the right to immediately close any account at any insured
depository institutions on demand, without cost to the consumer, that
consumers receive any balance in their account immediately, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Freedom and Mobility in Consumer
Banking Act''.
SEC. 2. FEDERAL DEPOSIT INSURANCE ACT AMENDMENTS.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended by adding at the end the following new section:
``SEC. 51. RIGHT TO CLOSE PERSONAL CHECKING AND SAVINGS ACCOUNTS.
``(a) In General.--An insured depository institution may not--
``(1) prohibit any person from closing a checking or
savings account, regardless of whether the balance in the
account is positive, zero, or negative; or
``(2) charge any fee to close any such account.
``(b) Time Limit.--An account at any insured depository institution
shall be closed by the institution not later than 48 hours after
receiving a request from the customer to close the account.
``(c) Methods of Requesting Closure of an Account.--
``(1) In general.--Any accountholder of an account at an
insured depository institution may request that the account be
closed in person, over the phone, or by other electronic or
remote means, as may be prescribed by regulation.
``(2) Exception for large accounts.--Notwithstanding
paragraph (1), any insured depository institution may require
an accountholder of an account which has an outstanding balance
of $25,000 or more on deposit at the depository institution to
close the account in person, to the extent the depository
institution has provided written notice of such requirement to
the account holder at any time prior to receiving a request
from the accountholder to close the account.
``(d) Repayment of Balances.--
``(1) In general.--Any balance in an account at an insured
depository institution that is closed by the institution
pursuant to a request by the accountholder shall repaid to the
accountholder in accordance with the following requirements:
``(A) In person.--If the request is made in person,
the total amount of funds on deposit in the account
shall be paid to the accountholder at the time the
request is made at the consumer's option and without a
fee, by certified check provided to the consumer at the
time of the request, by electronic fund transfer
executed on that business day to an account designated
by the consumer, or by any other means offered by the
financial institution if requested by the consumer.
``(B) Request made by other means.--If the request
is made over the phone, or by other electronic or
remote means, the total amount of funds on deposit in
the account shall promptly be remitted by the
institution to the accountholder at the consumer's
option and without a fee, by certified check issued on
the business day on which the request is received, by
electronic fund transfer executed on that business day
to an account designated by the consumer, or by any
other means offered by the financial institution if
requested by the consumer.
``(2) Time limit.--In any case, the payment by an insured
depository institution of the total amount of funds on deposit
in an account at the institution which the accountholder has
requested be closed shall be remitted to the accountholder
before the end of the 3 business day period beginning when the
accountholder submits such request.
``(e) Prohibition on Any Fees or Charges After Request To Close.--
No insured depository institution may impose any fees or charges on any
deposit account at such institution after receiving a request in
accordance with subsection (c) to close the account.
``(f) Prohibition on Reopening Account To Make Subsequent
Payment.--No insured depository institution may reopen an account that
the consumer has requested be closed in accordance with subsection (c)
to apply subsequent debits, whether preauthorized or otherwise, or for
any other reason, unless the consumer expressly requests that such
account be reopened.
``(g) Notice of Subsequent Preauthorized Recurring Debits.--During
the 30-day period beginning on the date an account at an insured
depository institution is closed pursuant to a request by the
accountholder, the insured depository institution shall promptly notify
the customer if a preauthorized recurring debit is directed to the
account.
``(h) Limitation on Reporting.--
``(1) Negative balance resulting from fees.--If, at the
time any account at an insured depository institution is
closed, the account has a negative balance resulting solely
from any fee assessed by the depository institution, the
insured depository institution may not report the fact of the
outstanding balance or any other adverse information with
respect to such account to any consumer reporting agency
described in section 603(f) of the Fair Credit Reporting Act if
such information could be used to adversely affect the
consumer's ability to open a transaction account at another
depository institution.
``(2) Treatment of negative balance resulting from
overdrafts.--If such information could be used to adversely
affect the consumer's ability to open a transaction account at
another depository institution, an insured depository
institution shall not report to any consumer reporting agency
(as defined in section 603 of the Fair Credit Reporting Act)
that an account had a negative balance at the time of the
closure of the account unless all of the following conditions
are met:
``(A) Only if the negative balance is the result of
funds actually paid by the depository institution to a
third party.
``(B) Only for the amount it actually paid to the
third party and not for any fees associated with the
transaction.
``(C) Only to the extent the negative balance is
the result of credit extended through an overdraft line
of credit program where the fee or charge incurred in
connection with the overdraft is considered a finance
charge under the Truth In Lending Act.
``(3) Notice and opportunity for repayment of overdraft.--
If an account of an accountholder at an insured depository
institution has a negative balance at the time the account is
closed, the insured depository institution--
``(A) shall promptly notify the accountholder of
the fact of the negative balance and the amount due;
and
``(B) may, after the end of the 30-day period
beginning on the date notice is provided to an
accountholder under subparagraph (A)--
``(i) report the fact of the outstanding
balance or any other adverse information with
respect to such account to any consumer
reporting agency, subject to the limitations in
paragraph (2); and
``(ii) take any other collection activity
with respect to such outstanding balance.
``(i) Transfer of Direct Deposit Received After Notice of Closure
and Payment.--If--
``(1) during the 30-day period beginning after any balance
in an account at an insured depository institution that is
closed by the institution pursuant to a request by the
accountholder has been repaid to the accountholder, a
previously scheduled amount intended for direct deposit into
such account is received by such institution, and
``(2) before the time such amount is received, the consumer
provides the insured depository institution with an account
number and insured depository institution routing number for a
successor transaction or savings account at another insured
depository institution,
the insured depository institution which receives such amount shall
transfer such amount, without a fee and by electronic fund transfer, to
the insured depository institution identified by the former
accountholder for deposit in the transaction or savings account
identified by such former accountholder.
``(j) Regulations.--The Federal banking agencies shall jointly
prescribe regulations to carry out the purposes of this section.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line