by Brian Wolfman
Check out this article in today's Washington Post by Jeff Plungis concerning proposed federal legislation on bank overdraft fees. The article's focus is on legislation championed by Rep. Barney Frank that would make overdraft protection on debit cards available on an opt-in basis only. Right now, some banks enroll customers in overdraft protection on debit cards without their consent and then charge nearly $40 after a customer makes a purchase when the customer's account lacks sufficient funds to cover the purchase. As Frank puts it:
We wouldn't be in a situation where we're considering legislation if you would have had an opt-in regime from the beginning. Don't do people favors without asking them.
Well it's about time!!! I think it's ridiculous for the bank to pay a $3 dollar charge and then charge $38.00 in overdraft fees. You are right! Don't do me any favors!!
Posted by: elizada | Wednesday, November 11, 2009 at 03:49 PM
Overdraft fees can be reduced by banks paying checks from lowest to highest. For example, if an account has $1,300 and the checks presented that day are for $1,400, $500 and $600, a bank will pay the $1,400 check first so three overdraft charges can be charged. The bank could pay the $500 check first, followed by the $600 check and then the $1,400 check. Therefore, only one overdraft charge would be incurred by the consumer. Bank presidents are not going to voluntarily pay the checks to favor the consumer. Congress needs to regulate the order of how checks are paid. The technology is there to pay consumer checks in steps as opposed to the current method.
Posted by: Robin Massie | Tuesday, November 17, 2009 at 09:01 PM
Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPRs Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.
If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.
Brian Wolfman
reply-3P3ND8VUHUI4_4A78ONKDI7RE 11/17/09 21:01
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Comment:
Posted by: Brian Wolfman | Tuesday, November 17, 2009 at 09:04 PM
Hell yea Its about time. Banks can take money out of your account at will, but you have to wait for your money to post. In a high speed society such as the banking industry claims to be, why cant transactions take place in real time. Why cant they say no, no you don't have enough for that. They think you have enough money to pay the overdraft fees. There isn't any real time purchase legislation to help a person from making a mistake. Don't tell me this cant happen, because this is America and it can happen. The banks, bank on people being human. Pun intended!!! If you don't have 20.00 dollars in your account the computers should be able to tell you that and not let you make that purchase. Gee!!! who writes down anything anymore? We are to busy. I know that I live in the moment just trying to make it. Why cant the banks get there too. You have to have a checking account in order to buy things in this country.
Some employers will not let you receive a paper check anymore. Everything is electronic, but if you check has been deposited and the bank has paid the big check first and bounced all the little checks, you may loose your entire pay check. I have had to go to a paycheck debit card system in order to not have the bank take out money when ever they want if I make a mistake, to which the bank holding the card charges me 3.00 dollars a transaction. Even dead beat dads get money to buy food. Don't you overdraft because in the eyes of the banking industry you have now become a bottom feeder. All of this because you forgot to write down a transaction buying food at the grocery store. Better go get food stamps!!! But wait these programs don't have enough funding because all the banks have been bailed out due to sub prime loans !!!! Who's supposed to be running this country. Again the little hard working people have been taken advantage of, because they forgot to write something down.
Posted by: ptj | Monday, November 30, 2009 at 09:34 PM
Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPRs Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.
If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.
Brian Wolfman
reply-3P3ND8VUHUI4_4A78YFI937RE 11/30/09 21:34
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Comment:
Posted by: Brian Wolfman | Monday, November 30, 2009 at 09:37 PM