Maine Senate gives initial support to Sen. Donna Bailey bill to strengthen consumer protections for customers at banks and credits unions
AUGUSTA – On Tuesday, April 8, the Maine Senate gave its initial support to a bill from Sen. Donna Bailey, D-Saco. LD 580, “An Act to Protect Maine Consumers by Prohibiting Fees Charged for Receiving Paper Statements from Financial Institutions and Credit Card Issuers,” would protect Mainers — especially older adults and retirees — from banks and credit unions that charge fees for paper statements. The Senate gave initial approval by a vote of 30-2.
“There is no federal law that bans this unfair business practice, so it is incumbent upon Maine state law to protect Maine consumers from these fees,” said Sen. Bailey. “As Mainers are managing their household budgets, they should not have to make hard decisions between affording the basics, such as clothes, food and medicine, and paying fees for paper statements. No one should have to pay additional fees for doing their basic banking, and this bill seeks to make this a reality.”
Nationwide, only New York and Pennsylvania have broadly banned these fees so far. Massachusetts has a similar law, but only for those under 18 and over 65. LD 580 would make Maine the third state to ban these fees for everyone, regardless of age. The bill is modeled on the legislation from New York that prohibits financial institutions and credit card companies from charging customers for receiving paper statements.
In his testimony submitted to the public hearing for the bill, John Brautigam of Legal Services for Maine Elders wrote, “For many consumers, particularly older adults and those in rural areas, paper statements are not a luxury, but a necessity.”
The average cost for producing paper statements is approximately $0.75, while the fees charged are often $1.99 or higher. LD 580 would not prohibit incentives for bank and credit card customers to switch to paperless statements. Instead, it would prohibit additional fees for customers choosing to receive paper statements in the mail.
LD 580 now faces additional votes in the House and Senate before it goes to the Governor’s desk.
###