February 22, 2012
The New York Times, Consumer Inquiry Focuses on Bank Overdraft Fees
The Consumer Financial Protection Bureau is beginning an inquiry into how banks levy overdraft fees they charge customers who bounce checks or withdraw more than they have in their accounts using debit cards or automated teller machines, the head of the agency said Tuesday.
Richard Cordray, the director of the bureau, said the inquiry would focus on whether some banks misled consumers in 2010 when they put in place new Federal Reserve regulations for overdraft protection. The agency will try to determine whether banks routinely reorder customer transactions to maximize potential overdrafts, and will seek data on the effect of overdraft fees on young and low-income bank customers.
Read the full article on the New York Times website.