Two bills recently introduced in the House would waive penalties for early certificates of deposit (CD) withdrawals and fees for remote banking and ATM charges during the COVID-19 pandemic.
Under House Bill 2580, it would be a violation of the Unfair Trade Practices and Consumer Protection Law for a financial institution to charge a penalty for early withdrawal of CDs.
Under House Bill 2581, the same violation applies to institutions that charge a fee for a remote transaction or use of an ATM.
The violation period would go into effect on the day the bill becomes law and would expire 90 days after the disaster emergency declaration issued by Gov. Tom Wolf expires.
“Families across Pennsylvania have been hard hit financially from the repercussions of the Covid-19 pandemic,” state Rep. John Galloway (D-Bucks), who introduced the bills, said. “My bills are aimed at alleviating the pains that have ensued by removing penalties from early withdrawals of CDs and by making it illegal for financial institutions to charge fees for remote transactions or uses of ATMs.
CDs are popular in the state, Galloway said, and offer a safer and more conservative way for people to invest their money.
The bills were referred to the House Consumer Affairs Committee.