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Overdraft anger? Call Congress

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    Overdraft anger? Call Congress

    February 14, 2010

    If you're fed up with overdraft fees, you're not alone. During a telephone press conference held earlier this afternoon, which I sat in on, Consumer Federation of America released the results of a national poll today showing that (surprise) just about everyone wants limits and additional disclosures on bank overdraft fees.

    I'll get to that in a moment, but there was really a second message that the CFA and the Center for Responsible Lending, which had a representative at this conference, wants to get out: If you're truly fed up, call your Congressman or woman and ask them to get behind two bills circulating in Congress that intend to put much more severe restrictions on overdraft fees.

    OK, the poll.

    The questions asked were inspired by what's being debated in Congress right now.

    On ATM withdrawals, the idea of requiring banks to disclose on the ATM screen when a withdrawal will overdraw the account: 86% approved of the idea; 10% don't approve and would apparently rather be surprised later; the other 4%, they don't say, but perhaps they hadn't made up their minds yet.

    Requiring banks to process transactions in the order in which they are received: Again, 86% in favor; 10% are against that idea; that leaves 4% who gave no answer. I'm starting to think the 10% are bankers.

    Requiring banks to get the permission of a customer before routinely covering overdrafts on checks written, debit card use and ATM withdrawals and charging them a fee for each overdraft: That's kind of cumbersome language, but basically do you want banks to charge you for overdrafts? 74% say no; 21% say yes.

    Limit overdraft fees charged to one per overdraft: In other words, if you have a bad day, would you like just one fee instead of one fee per charge? 72% vote yes; 21%, no.

    Require overdraft fees to be related to the bank's cost of providing the service: As in, if costs $5 to cover a $3 mistake, should it be a $5 overdraft fee or a $39 fee? 65% like that idea; 26% are pretty happy with the way things are.

    Limit overdraft fees charged to one per month and a maximum of six per year:24 billion dollars are coming out of the pockets of mostly low to middle income consumers," said Jean Ann Fox, director of financial services for Consumer Federation of America. She then pointed out that nobody who gets slapped with these overdraft fees are first given "truth-in-lending disclosures" and adds that the fees are always paid from, from the person's next paycheck: "This is a form of extremely unfair credit."

    So if you aren't happy, call or write your Congressperson and tell them to support the bill, the Overdraft Protection Act, H.R. 3904, being championed in the House by Congresswoman Carolyn Maloney and the Fairness and Accountability in Receiving (FAIR) Overdraft Coverage Act by Sen. Chris Dodd.

    And, of course, if you're pleased as punch with the way things are going, you can always call your Congressperson and tell them that, too. If you don't know where to find your Congressperson, you may want to check out the Web site Contacting the Congress.


    http://www.walletpop.com/blog/2010/0...call-congress/
    Last edited by Flamingo; 02-14-2010, 03:59 PM. Reason: To conform with forum posting rules - OP please take note
    “When fascism comes to America, it’ll be wrapped in a flag and carrying a cross” — Sinclair Lewis

    #2
    I don't get overdraft fees anymore because I don't have a joint checking account with an idiot and I can do math. But when I used to get od fees it used to really make me mad that the bank would process transactions, largest first, instead of in the order they were transacted, so you could incur the most number of overdraft fees possible.

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      #3
      Originally posted by WhatMoney View Post
      So if you aren't happy, call or write your Congressperson and tell them to support the bill, the Overdraft Protection Act, H.R. 3904, being championed in the House by Congresswoman Carolyn Maloney and the Fairness and Accountability in Receiving (FAIR) Overdraft Coverage Act by Sen. Chris Dodd.
      Yes. Definitely call your congressman. But you might have trouble catching him in the office. See, he and your banker's lobbyist have a dinner date at a posh DC restaurant that neither you or I could afford. Guess who will be picking up the tab? (Hint: It aint your congressman). And while they're sipping their after-dinner Chivas and sodas, the lobbyist will make a very nice campaign contribution to your congressman -- that you also couldn't afford. And then they'll probably discuss that silly old Overdraft Protection Act and how it would be bad for the banking industry and the economy as a whole. But yes, by all means, call your congressman.
      Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.

      Comment


        #4
        As a matter of fact, that is exactly where my congressman was on the day of an important vote last fall. I was livid.

        Comment


          #5
          I think my Congressman was in the bathroom with his male page.

          (Okay, okay... so Mark Foley really wasn't doing it in a bathroom... I combined too stories.)
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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