Sen. Chris Dodd wants to shakedown bank overdraft fees business
I know many people missed the Bank of America class action lawsuit deadline and many still have a problem with the overdraft fees practices of BOA and other banks. It is probably time for me to close that thread and direct folks to his site since HE has the power to affect change.
Here is a good article for dissatisfied *victims* of excessive bank overdraft fees. Banks are making in excess of $17 billion a year in fees alone. Bump interest payments...lol. Connecticut-D Senator Chris Dodd can hear the cries. Luckily, he is chairman of the Banking Committee and wants to see a decrease in overdraft fees charged by banks.
According to an AP article:
"Dodd, D-Conn., said he will propose legislation that would require customers to sign up for overdraft protection. If they don't, a bank would not be allowed to charge a fee even if the customer overspends.
Under this scenario, banks are likely to deny charges that would exceed a person's credit limit.
Congress passed a similar provision this spring as part of a credit card bill, which will take effect in February.
"Excessive, automatic overdraft fees are forcing many American families deeper into debt at a time when they are already struggling to make ends meet," said Dodd." READ MORE...
If you want to share your experience or write a note to encourage him to push this legislation you may do so here Express an Opinion.
If you prefer to write or call:
U.S. Senator Chris Dodd
448 Russell Building | Washington D.C., 20510
Tel: (202) 224-2823 | Fax: (202) 224-1083
30 Lewis St Suite 101 | Hartford, CT 06103
Tel: (860) 258-6940/(800) 334-5341 --CT only
Fax: (860) 258-6958
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9/25/9 UPDATE
FROM SENATOR DODD'S OFFICE
"Dodd Statement on Bank Changes to Overdraft Fees
September 23, 2009
Five days after Banking Committee Chairman Chris Dodd (D-CT) announced he is working on a bill to rein in abusive overdraft fees, the nation's two largest banks announced steps towards needed reforms.
J.P. Morgan Chase and Bank of America today announced they would limit fees charged to customers for overdrawing their bank accounts.
"These are positive changes, but the system has gotten completely out of whack," said Dodd. "We are talking about abusive practices that never should have been instituted in the first place. I will take a close look at the banks' new policies as I continue work on a bill to permanently protect customers from excessive overdraft fees."
Last week Dodd announced he was working on legislation to curb abusive practices that slapped bank customers with $38.5 billion in fees for overdrawing their accounts.
So-called "overdraft protection programs" enable customers to overdraw their accounts, without their knowledge, when they use checks, electronic transfers, debit card purchases, and ATM withdrawals. Account holders are often enrolled in the programs without their consent and many banks will hit customers with fees upwards of $30 for this "courtesy" even if their account is only overdrawn by a few cents.
In June, Chairman Dodd wrote Federal Reserve Chairman Ben Bernanke, asking the Fed to require banks receive customers' permission before enrolling them in "overdraft protection programs."
Dodd is working on the new legislation with Sen. Chuck Schumer (D-NY). Rep. Carolyn Maloney (D-NY) has introduced legislation in the House."
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