In defense of overdraft protection
November 2, 2009 | alternatives, federal legislation, industry | Comments (0)From the Los Angeles Times:
Banks and credit union officials described their controversial automatic overdraft protection programs — with fees that average $35 each time they are triggered — as a courtesy so customers aren’t embarrassed when a store cashier denies a purchase or, worse, when a mortgage check bounces.
“Payment rejection means embarrassment, inconvenience, merchant fees and other adverse circumstances,” said Nessa Feddis, senior counsel at the American Bankers Assn.’s Center for Regulatory Compliance.
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