NEWS ARTICLE
September 2, 2011
The SunSentinel, "Consumer Groups Say Overdraft Fees Still Too High"
The Florida SunSentinel reports that one year after Congress cracked down on overdraft fees, consumer advocates say banks are still charging too much to customers who withdraw more than they have in their accounts. The median overdraft fee at the nation's 14 largest banks remains $35, unchanged from a year ago, according to a study this June by the Consumer Federation of America.
In all, national banks and other financial institutions will collect about $38 billion in overdraft fees this year, up from $35 billion last year and from $31 billion five years ago, consumer advocates say, citing estimates from economic researcher Moebs Services. Debate is heating up in Florida and nationwide, because the federal regulator for national banks and thrifts is proposing new rules on overdraft fees. It requested public comment and now is reviewing comments to devise final rules.
The proposed new rules on overdraft fees focus on money withdrawn from automated teller machines or charged on debit cards. They follow up on a law Congress passed last year that stopped banks from automatically charging overdraft fees on those transactions. The law required banks to ask customers to opt-in for overdraft protection. Consumer advocates, including the Center for Responsible Lending, say banks since then have aggressively marketed overdraft protection, often in ways that were hard for consumers to understand and that pressured customers to opt-in for the coverage.
Read the full article on the SunSentinel site.
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