Tell the Fed about unauthorized overdraft practices

via email from The Center for Responsible Lending

Today is the last day to send your

unauthorized overdraft story to the Fed.

Read today’s USA Today story on another unfair bank overdraft practice and tell your story to the Fed below:

The Fed knows something smells fishy with overdraft – but do they know just how bad it stinks?

In new proposed rules, the Federal Reserve Board has acknowledged that banks are using unfair overdraft practices. But their solution doesn’t go far enough.

Thousands of consumers have sent the Fed their stories during the official comment period for the proposed rules. Thank you if you were one of those consumers – it will really make a difference.

The comment period ends at 5 pm ET today, so you can still send a story now and encourage the Fed to stop unauthorized overdrafts.

The new rules would not keep banks from enrolling customers in their most expensive option for covering overdrafts without prior consent, but would only allow them to opt out of the program after the fact. Consumers should not have to “unsubscribe” from this costly system.

Under prevailing practices, banks can intentionally maximize the overdraft fees you pay by automatically approving debit card purchases that throw your account balance into the negative and by manipulating their debit-clearing systems. At the least, the Fed should make them get your approval before charging you these fees, which now average $34 per incident.

If you’ve been burned by unauthorized overdrafts, click here to tell the Fed. Thanks to the many who have already written.

The comments you submit will be part of the Federal public record made available to the public online and in paper form. Your name and address may be included as part of your comments.

For more information – Shredded Security

Why George, Why?

Another must read from Callahan’s Cleveland Diary – take a good hard look at how many foreclosures were filed within blocks of George Voinivich’s Cleveland home. They say a picture paints a thousand words – this one paints a million. Look at the picture and then call George and ask him why he voted no on the bankruptcy reform measure.

More Callahan – a review of what passed and what didn’t and who benefits and foreclosures by zip code.

My take on the stories behind the foreclosure crisis.

Advocacy Groups Urge Bankruptcy Relief for Homeowners

In response to bankruptcy reform measures permitting restructuring or deferment of home mortgages being dropped from the Senate’s foreclosure compromise bill 15 civil rights, consumer and housing groups – Center for Responsible Lending, Leadership Conference on Civil Rights, ACORN, American Federation of Labor and Congress of Industrial Organizations, Consumer Action, Consumer Federation of America, Consumers Union, Lawyers’ Committee for Civil Rights Under Law, NAACP Legal Defense & Educational Fund, Inc., National Association of Consumer Advocates (NACA), National Association of Consumer Bankruptcy Attorneys, National Association of Neighborhoods, National Community Reinvestment Coalition, National Council of La Raza, National Fair Housing Alliance – issued a joint statement condemning the eviscerated bill:

Sadly, as long as policymakers rely on inadequate voluntary measures, we will continue to see foreclosures tear down communities and wipe out the most important source of financial security that most Americans have. Twenty thousand homeowners with subprime loans are losing their homes every week. It is not too late to do the right thing. We urge both the Senate and the House to take fast action to lift the ban that now holds homeowners hostage to voluntary relief from their loan servicers and investors that may never come.”

Call your representatives. Take action at the Center for Responsible Lending.