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U.S. PIRG Consumer Blog
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October 30, 2009
$35 overdraft fee with that $4 latte? Hearing today.
We've signed onto testimony by Jean Ann Fox of the Consumer Federation of America, to be delivered this morning at a hearing (other testimony is here) of the House Financial Services Committee. A markup vote will occur next week. Several of our consumer colleagues, from CRL and Consumers Union, will testify and are joined by a witness from the North Carolina State Employees Credit Union -- one of the good credit unions that doesn't copycat the banks and gouge its member-customers with unfair overdraft protection fees. In addition to these witnesses, a veritable parade of industry witnesses will attempt to answer the questions: Why do banks impose overdraft protection fees without asking consumers to apply and consent to it? Why have banks and credit unions switched the default to allow debit overdrafts in online point of sale transactions, when they could reject them instead and save consumers $35 on a $4 latte? Why do some regulators allow banks and credit unions to mislead consumers about their actual balances by including the amount they are allowed to overdraft in ATM machine balance inquiries? Why do some banks and credit unions change the order that they clear checks and debits, so more will bounce?Why do banks call this a customer benefit, not a penalty fee?
Our most recent testimony on overdraft fees is here.
Posted by Ed Mierzwinski at October 30, 2009 08:28 AM
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