The Consumer Federation of America, the National Consumer Law Center (on behalf of its low-income clients), the Center for Responsible Lending, Consumers Union, Consumer Action, National Association of Consumer Advocates and U.S. Public Interest Research Group have sent a letter to Acting Comptroller of the Currency John Walsh, urging the Office of Comptroller of the Currency (OCC) to adopt stricter guidance that requires banks to use fair overdraft practices and fully inform consumers.

The nation’s largest banks charge customers overdraft fees averaging $35 per transaction, often adding up to hundreds of dollars per day. The most common triggers of overdraft fees are small debit card transactions—which cost the consumer nothing when they are simply denied due to lack of funds.

Over the summer, a new Federal Reserve rule went into effect requiring banks to get consumers’ consent or “opt-in” to pay overdraft fees for debit card single purchase and ATM overdrafts. But because the Fed did not address the size or frequency of overdraft fees, banks still have strong incentives to push customers to opt in, and then continue to barrage them with fees.

Banks are sending letters to consumers trying to persuade them to opt into paying steep fees for overdrafts, saying that they may need this service in an emergency, when, in fact, banks typically carry a far lower-cost option – an overdraft line of credit – and many also offer transfers from savings accounts or credit cards, which are also usually less expensive. But banks obscure these lower cost options.

The Center for Responsible Lending spent $205,000 lobbying the federal government in the second quarter as it pushed for stricter consumer protections on credit cards, mortgages payday loans and other financial products.

The advocacy group, based in Durham, N.C., also lobbied on issues including the financial overhaul legislation, debt settlement and the prohibition of abusive mortgage lending and modification practices.

The group lobbied the House, Senate, Federal Reserve, Federal Trade Commission and Federal Deposit Insurance Corp., according to a form filed with the House public records office July 20.

Paul Steiger, president and editor in chief, made $571,687 in salary, plus $13,430 in other compensation.

Richard Tofel, treasurer and secretary, made $320,978 in salary, plus $21,312 in other compensation.

Stephen Engelberg, managing editor, made $343,463, plus $31,231 in other compensation.

Dafna Linzer, senior reporter, made $205,455, plus $20,421 in other compensation.

Susan White, senior editor, made $160,011, plus $18,063 in other compensation.

Tracy Weber, senior reporter, made $176,309, plus $21,243 in other compensation.

Charles Ornstein, senior reporter, made $172,287, plus $26,805 in other compensation.

Thomas Miller, senior reporter, made $186,479, plus $28,676 in other compensation.

The Center for Responsible Lending spent $130,000 lobbying the federal government in the first quarter as it continued to press for stricter regulation of credit card fees and on other consumer issues, according to a disclosure report.

The Durham, N.C.-based advocacy group, which advocates tighter regulation of mortgage lenders, also lobbied Congress and federal agencies on creation of a new consumer financial protection agency as well as overdraft loans and payday loans.

In addition to the House and Senate, the group also had lobbying contacts with the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., according to a disclosure form filed April 20 with the Senate’s public records office.

The $130,000 the group spent in the January-March period is below the $180,000 spent in the first quarter of 2009 and the $175,000 expended in the fourth quarter of last year.

After all, it wasn’t Goldman that passed the Community Reinvestment Act that forced banks to make loans to people who could never pay them back. It wasn’t Goldman that created and supported Fannie Mae and Freddie Mac. And it wasn’t Goldman that drove interest rates down to a below market level to cause a housing rush not seen since gold was found in them thar’ hills in the mid-1800s.

But if Senators were really interested in finding out the cause of the housing bubble, they would call one Eric Stein to the dais.

Mr. Stein is currently that Deputy Secretary of Treasury for consumer protection and is likely to head the vastly powerful Consumer Bureaucracy currently being pushed by big banks and Wall Street. But prior to his appointment to Treasury, Mr. Stein the bag man for the Center for Responsible Lending and its many Self Help subsidiaries, was singly responsible for more bad loans than all Goldman employees together. Working with billionaire con-man John Paulson, Stein lobbied to pass the laws at the root of the crisis and pressured banks to make bad loans that caused their portfolios to collapse when the economy turned. They were the Bonnie and Clyde of the subprime mortgage world.

 It’s time for a hearing focusing on the real cause of the housing bubble. It’s time to call Eric Stein up to the Hill for questioning under oath.