Wednesday, June 18, 2008

Tell the Fed to stop unauthorized overdrafts -Support HR 946

The Fed knows something smells fishy with overdraft –but do they know just how bad it stinks?

(PSA Courtesy of Center for Responsible Lending) http://www.responsiblelending.org

In new proposed rules, the Federal Reserve Board has acknowledged that banks are using unfair overdraft practices. But their solution doesn’t go far enough.

What's At Stake:
New rules would not require banks to obtain consent from customers before enrolling them in their most expensive option for covering overdrafts, but would only allow them to opt out of the program after the fact. Consumers should not have to “unsubscribe” from this costly system.


Under prevailing practices, banks can intentionally maximize the overdraft fees you pay by automatically approving debit card purchases that throw your account balance into the negative and by manipulating their debit-clearing systems. At the least, the Fed should make them get your approval before charging you these fees, which now average $34 per incident.

Take Action: tell the Fed your overdraft story so they will stop unauthorized overdrafts. http://ga3.org/campaign/fedstopoverdraft

A recent study released by the Center for Responsible Lending reveals that "older Americans who rely heavily on Social Security income pay nearly $1 billion every year in fees for unauthorized bank and credit union overdrafts."

"Shredded Security" finds that overall, banks collect $4.5 billion from Americans 55 and older for these unfair fees, risking the financial security of the very people who have put a lifetime of work into building and sustaining this nation's economy." click the link below for additional information and statistics. http://www.responsiblelending.org/issues/overdraft/reports/security-threat.html

Support Fair Over Draft Protection http://ga3.org/campaign/hr946







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