HOUSE CONCURRENT RESOLUTION NO. 76
(By Delegates Moore, Reynolds, Cann, Frazier, Hartman Hunt,
Hutchins, Iaquinta, Louisos, Mahan, Manchin, Michael, Perry,
Shaver, Shook, Skaff, Walker, T., Wooton, Andes, Ashley, Azinger,
Carmichael, Miller, J., Schoen, and Walters)
(Originating in the Committee on Banking and Insurance)
(February 24, 2010)
Requesting the Joint Committee on Government and Finance study the
issues related to fees and charges for overdrafts of checking
and other depository accounts and the procedure and
methodology of the posting of deposits and other monetary
transactions in checking and other depository accounts in West
Virginia state chartered banks and other financial depository
institutions in the state that may result in an overdraft of
an account.
Whereas
, An overdraft of a checking account, savings account or
other depository account occurs then withdrawals or other monetary
transactions debiting the account exceed the available balance of
funds in such accounts; and
Whereas
, Many overdrafts are accidental occurrences when the
account holder may unknowingly over estimate the available balance of their account when writing a check or using electronic forms of
withdrawals; and
Whereas
, Overdrafts can also occur due to the delayed posting
of deposits or credits to an account that is then drawn upon by the
account holder when the individual is under the assumption that the
deposits or credits have been applied to their account; and
Whereas
, Overdrafts can also occur due to criminal activity
involving theft of the individual's account or account information;
and
Whereas
, Overdrafts may also occur as a result of the order in
which previous withdrawals and debits are posted to the
individual's account based on the institution's policies of
transaction postings; and
Whereas
, Many banks offer free or paid programs that will cover
the overdraft in these instances as a service and benefit to the
account holder and may even offer help in determining the reason
for or solution to such overdrafts; and
Whereas
, Other instances of overdrafts may be due to the
account holder's negligence or a deliberate attempt to defraud the
banking institution; and
Whereas
, Banks may levy overdraft fees on returned checks and
overdrawn accounts to help recoup losses incurred as a result of an
overdraft and to pay for services provided to account holders
related to an overdraft; and
Whereas
, According to the publication Financial Times, an
estimated $38.5 billion in overdraft fees were collected by United
State's banks in the year 2009, nearly double from the year 2000;
and
Whereas
, The United States Congress and various state
legislatures have become concerned over the steady rise of both
overdraft fees and the methodology resulting in occurrences of
overdrawn accounts; and
Whereas
, The Legislature should study and consider legislation
and other measures to help reduce and alleviate the expense and
hardship occurring to the citizens of this state as a result of
account overdrafts while also considering the expense and financial
burden incurred by banks and other depository institutions as a
result of overdrafts; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby
requested to study the issues related to fees and charges for
overdrafts of checking and other depository accounts and the
procedure and methodology of the posting of deposits and other
monetary transactions in checking and other depository accounts in
West Virginia state chartered banks and other financial depository
institutions in the state that may result in an overdraft of an
account; and, be it
Further Resolved, That the Joint Committee on Government and Finance report to the Legislature, on the first day of the regular
session,
two thousand eleven, on its findings, conclusions and
recommendations together with drafts of any legislation to
effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this
study, to prepare a report and to draft necessary legislation be
paid from legislative appropriations to the Joint Committee on
Government and Finance.
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