Finally, action on overdraft fees

by Jeff Rosenberg | 7 Comments

I just wrote about the issue of overdraft fees a couple of days ago, particularly the problem of banks allowing debit transactions that customers don’t have the money to cover, then charging hefty fees. Well, it turns out that piece was pretty timely, as the Federal Reserve has finally enacted new rules that will curb overdraft excesses:

The Federal Reserve Board on Thursday announced final rules that prohibit financial institutions from charging consumers fees for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft service for those types of transactions.

Before opting in, the consumer must be provided a notice that explains the financial institution’s overdraft services, including the fees associated with the service, and the consumer’s choices.

Hooray for the Fed! This has been a long time coming, and it will go a long way toward ending some outrageous banking practices.

November 13, 2009, 3:00 pm | Category: CD3 and General |

7 Responses to “Finally, action on overdraft fees”

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  • Kerosene Hat
    November 14, 2009 at 2:55 am

    Thank the lord jesus almighty! The two days and two hours you have been worried about this topic must have been awfully stressful for you.

    • lojasmo
      November 14, 2009 at 1:29 pm

      I think jeff posted an anecdote about how he got fucked by a bank for this very thing in college.

      Thanks for your concern, though. Your insight is always appreciated.

      • Kerosene Hat
        November 14, 2009 at 5:04 pm

        Yes he did, two days ago. The trauma over the cost from that admitted error on his part must have been unbearable. Finally, after two full days of tireless and emotionally exhausting advocacy on behalf of this measure the rule has been implemented, finally. Thank jebus that now instead of paying their own bank when a person overdrafts using a debit card they will have the option to instead pay the charge to the business from whom they were making the purchase. That extra effort needed to for one bank to collect from another will surly result in lower costs for us all. Thank god those two days of waiting are finally over.

  • DantheMan
    November 16, 2009 at 2:31 am

    There is always the option of not spending your account to a negative balance. But imposing curbs on overdraft fees puts the onus on the big boys, which always seems to make everyone feel better.

    • Danny
      November 16, 2009 at 11:28 pm

      Are you kidding Dan? Setting a budget and sticking to it is never an option for Democrats, whether its in Congress or around their kitchen table.

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