By the way, Rep. Maloney also authored the Credit Cardholders Bill of Rights , which is working its way through Congress.
Advertise | AdChoicesMy two cents It’s one thing to overdraw your account by writing a check. It’s quite another when an overdraft takes place electronically – using a debit card or ATM. In these situations, the bank knows if you are going to overdraw the account and could either stop the transaction or give you the option to pay the penalty and proceed. In this case, customer choice is customer service.
The banks have lobbied hard for the status quo and for good reason; they’re making a ton of money. Consumers Union figures the nation’s banks collected about $7.8 billion last year in overdraft fees related to debit cards and ATM withdrawals.
According to the FDIC, the average overdraft triggered by ATM and debit card transactions is $17. The median fee for each overdraft is $27.
Consumer groups are doing their best, but the regulators need to hear from you. Time is running out. The comment period ends next Monday, March 30. Contact the Federal Reserve right now and let the Board know you want the opt-in rule. It’s just silly to make you cancel a service you didn’t ask for. If bankers are so sure customers want this high-priced overdraft protection they don’t have anything to worry about.
The Center for Responsible Lending web site has more information on bank overdraft fees and an easy way to comment to the Fed.
To comment directly to the Fed send an e-mail here. The subject line MUST include “Docket No. R-1343.”