Nine U.S. Banks Said to be Examined on Overdraft Fees
http://www.bloomberg.com/news/2012-04-20/nine-u-s-banks-said-to-be-examined-on-overdraft-fees.html
Two years after regulators gave Americans more power to manage overdrafts of their checking accounts, the Consumer Financial Protection Bureau is reviewing bank practices to determine if the crackdown went far enough.
The agency, which will decide by the end of the year whether to write new rules, is scrutinizing nine banks including JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC) and Bank of America Corp., said four people briefed on the examination.
The inquiry focuses on how financial institutions persuade customers to enroll in what they call overdraft protection programs. Examiners are looking at online and mailed marketing material as well as scripts used by the banks customer-service representatives to determine whether they could be confusing to consumers, said the people.
Bureau examiners have conveyed a tone of skepticism that this is really a good product for borrowers, said Jo Ann Barefoot of Washington-based Treliant Risk Advisors, who counsels banks on dealing with federal supervisors.