We’re not alone
November 5, 2009 | alternatives, federal legislation, industry | Comments (0)Congress is also putting heat on overdraft fees:
Continuing her campaign for better consumer protection on the part of banks, Congressmember Carolyn Maloney has reintroduced a bill to require a bank to get a customer’s permission before charging overdraft fees.
The measure would also need permission to cap the number of overdraft fees a bank could charge consumers to just six per year. The bill would also:
•Require that overdraft fees relate to the actual cost of processing the overdraft, as defined by bank regulators.
•Stop banks from manipulating the sequence in which they process debits in order to maximize penalty fees and
•Amend the Truth In Lending Act to require notification if a transaction at an ATM would trigger an overdraft fee and offer the chance to cancel the transaction before a fee is incurred.
Maloney (D–Queens/ Manhattan), a member of the House Financial Services Committee, stated at a committee hearing which she chaired, “The number of debit card transactions is soaring and so too are abusive overdraft fees. This bill brings sunshine and permission into the process, restricts deceptive practices and empowers consumers so they can manage their own lives and their own financial accounts.”
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