Democrats Want To Curb Banks' Overdraft Fees
WASHINGTON (AP) ¿ Senior congressional Democrats say legislation is still needed to limit how lenders charge customers who overspend on their accounts, even though some big banks have already curbed high-fee overdraft programs.
Rep. Barney Frank, the chairman of the House Financial Services Committee, on Friday joined Senate Banking Committee Chairman Chris Dodd, D-Conn., in calling for legislation that would require banks to ask customers whether they want overdraft protection.
"Don't do favors for people without asking them," said Frank, D-Mass., at a hearing on a House overdraft bill introduced by New York Democratic Rep. Carolyn Maloney.Most banks automatically allow customers to overdraft their accounts, then charge them $25 to $35 per infraction. Banks say that customers want the protection, rather than being denied a purchase at the cash register. In recent weeks, several major U.S. banks, including Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., have said that they will allow customers to "opt out" of their overdraft programs. The House and Senate bills under consideration would go further by requiring that fees be proportional to the cost of the overcharge. The legislation also would prohibit banks from imposing more than one overdraft fee a month, or six per a year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV