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.