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

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1 Comment (+add yours?)

  1. Kate
    Aug 06, 2008 @ 06:13:48

    You’re right. Fee income is very important to banks and overdraft fees are the #1 fee income generator. They even manipulate the payment system to make sure they get the most out of you that they can.

    It’s disgusting how banks take advantage of customers. They offer free checking but know that you will overdraw your account and pay a ton in fees at some point.

    If you’ve received an overdraft, take our survey…

    http://www.odnsf.com

    Reply

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