A rule issued by Federal Reserve Board that took effect in 2010 requires that banks get explicit permission from their customers before enrolling them in high-cost overdraft systems that cover debits and ATM transactions. They received thousands of comments from consumers asking for the stronger of two proposed rules, which is a step in the right direction, but fails to address abuses in systems when customers do opt in. The FDIC has addressed one of the most egregious practices, re-ordering transactions from highest to lowest in order to charge more overdraft fees, but its guidance applies only to the state-chartered banks it regulates. The OCC and the Fed should stop re-ordering as well, and all bank regulators should take steps to keep financial institutions from assessing unfair and excessive overdraft fees.
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- CRL Comment Letter on Garnishment of Federal Benefits
June 18, 2010
CRL and other consumer groups provide comment on the Office of Personnel Management's proposed rule regarding garnishment of federal benefits.
- CRL and Other Groups Comment on Clarifications to Fed's Opt-In Rule
March 30, 2010
CRL and other consumer groups provide comment on the Federal Reserve’s opt-in rule and the proposed changes to Regulation DD.
- National Bank Regulator Enabled Overdraft Abuses
February 24, 2010
The OCC has acknowledged problems with bank overdraft systems but has allowed the banks they regulate to use them.
- Congressional Proposal Would Curb Overdraft Abuses; Fed’s Rules Fall Far Short
February 2, 2010
Chart comparing Federal Reserve rules and proposed legislation to curb overdraft abuses.
- Quick Facts on Overdraft Loans
April 9, 2009
Brief facts about overdraft loans, largely derived from CRL research