An overdraft protection law, effective Jan. 19, 2010, was issued by the Board of Governors of the Federal Reserve. It prohibits financial institutions from charging consumers an overdraft fee on some transactions unless the consumer opts-in to overdraft protection, according to the U.S. Office of the Comptroller of the Currency.
In 2013, a bill was filed in the House of Representatives to further strengthen consumer protections, but it has not been signed into law. The 2010 law prohibits the automatic assessment of an overdraft fee for ATM and debit card transactions where there are insufficient funds for the attempted transaction, according to the Consumer Financial Protection Bureau. The 2010 law does not prohibit automatic overdraft charges for checks or recurring electronic payments.