Dodd Introduces Legislation to Curtail Overdraft Fees

[The Straight Story]

Dodd Introduces Legislation to Curtail Overdraft Fees

Oct. 19 (Bloomberg) -- Senate Banking Committee Chairman Christopher Dodd is introducing legislation aimed at limiting bank overdraft fees.

“American consumers are being hit with hundreds of dollars in penalties for overdrawing on their account by just a few dollars,” Dodd said in a statement. “Banks should not be trying to bolster their profits at the expense of their customers.”

The bill, introduced today, is co-sponsored by Senator Charles Schumer, a New York Democrat, and Rhode Island Senator Jack Reed, a Democrat and chairman of the Senate Banking Subcommittee on Securities, Insurance and Investment, according to the statement.

Representative Carolyn Maloney, a New York Democrat, introduced legislation in March to require consumer consent for overdraft protection and alert consumers at the point of sale about insufficient funds in their accounts. The House Financial Services Committee hasn’t voted on the bill.

Charges related to overdrawn U.S. accounts may rise to $38.5 billion this year from $36.7 billion in 2008, according to research firm Moebs Services Inc. in Lake Bluff, Illinois.

http://www.bloomberg.com/apps/news?pid=20601103&sid=arnIR7C_0b7U

[Ruby the Liberal]

1. And while they dance on the fringes, Rome burns

At this pace, we will probably have a banking reform overhaul by 2020.

[NJCher]

2. agreed, but it is an issue

Perhaps you didn't see the links and videos posted here about consultants who make it their business to teach banks how to rip us off over this.

It's an outrage and I would not want something like this to be held up just so there could be a larger package of legislation. They should do both.

Cher

[Ruby the Liberal]

3. There is no question that it is an issue

Why are we taking these things one by one?

[Johonny]

4. I've enjoyed the fact my bank

has dropped my interest checking to basically 0 interest and then begged me to move my money to a low interest CD. Then right after doing this trying to sell me overdraft insurance because my checking account was low. LOL. The banks are basically colluding to keep interest checking accounts low across the board to get people with money to either 1) bounce checks 2) buy worthless overdraft coverage they don't need. The banking industry needs a lot of reform. I guess they're waiting for the third term to do it.