Neb. senator targets 'hold' charges on debit cards

Feb 24, 2014

LINCOLN, Neb. (AP) — Hotels, gas stations and restaurants would have to notify customers if they place temporary hold charges on their debit cards, under a bill set for review in the Nebraska Legislature.

The holds guarantee that merchants are paid for gas bought at the pump and food taken from hotel refrigerators. But they also temporarily deny customers access to money in their accounts, sometimes in amounts $50 to $100.

Senator John Harms of Scottsbluff will present the bill Monday to the Legislature's Banking, Commerce and Insurance Committee. Harms says the bill is designed to help low-income people who don't realize their money could be held.

Nebraska business groups say they agree that the holds could create problems, but they question whether the bill will address the issue.

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