Bank customers who overdraw their checking accounts would get new protections from excessive penalties under legislation proposed Monday by the Senate banking committee chairman. The measure unveiled by Sen. Christopher Dodd, D-Conn., would give people a choice in whether they want to participate in overdraft programs that charge fees for covering ATM withdrawals and debit card transactions. Dodd cited estimates that banks stand to collect a record $38.5 billion in fees for customer overdrafts this year. "At a time when many can afford it least, American consumers are being hit with hundreds of dollars in penalties for overdrawing on their account by just a few dollars," he said in a statement. "Banks should not be trying to bolster their profits at the expense of their customers."

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