The latest news on overdraft fees, overdraft fees and other bank fees from the Center for Responsible Lending.
- Georgia Regulator’s Order Brings Parity in CU Overdraft Fees
Credit Union Times 08 Aug 2013
Georgia's financial regulator, Commissioner Kevin B. Hagler, has issued a declaratory order to bring parity in overdraft fee limitations for all of the state's credit unions. The order exempts state-chartered credit unions from fee limits on overdrafts from deposit accounts, aligning them with the guidelines governing federally chartered credit unions.
- New York Scrutinizes Online Lenders
Wall Street Journal 06 Aug 2013
Benjamin Lawsky, superintendent of the New York Department of Financial Services, has issued 35 cease-and-desist orders to online firms that he believes might be dodging state laws prohibiting lenders from charging egregious interest rates.
- CRL Report Targets Bank, CU Overdraft Fees
Credit Union Times 01 Aug 2013
Banks and credit unions are still charging abusive overdraft fees, the Center for Responsible Lending (CRL) declares in its report, “High Cost Overdraft Practices.” In 2010, the FDIC suggested to financial institutions that more than six overdraft charges per year is excessive.
- ‘Unbanked’ Minnesotans Hurt Most by Predatory Lending
MinnPost.com (MN) 24 Jul 2013
More than 360,000 Minnesota households that are “unbanked” or “underbanked” do not have access to reasonably priced, basic financial services, according to a 2011 survey by the Federal Deposit Insurance Corporation.
- Bounced-Check Fees Targeted by Banking Bill in Senate
Columbus Business First 22 Jul 2013
New legislation sponsored by Sen. Sherrod Brown (D-Ohio) would take aim at the practice of some banks of posting check payments in order from the highest amount to the lowest.
- Tampa Overdraft Fees Most Expensive in the Country
Tampa Bay Business Journal 09 Jul 2013
Moebs Service has identified Tampa as the U.S. market with the steepest overdraft fees. According to the company, the national median is $30 -- up $1 from a year ago -- but banks and credit unions in Tampa charge a median $34.
- Credit Unions Raising Overdraft Fees Faster Than Banks, Report Says
Washington Post 08 Jul 2013
Although the overdraft fees charged by credit unions are lower than those charged by banks, a new report from Moebs Services, based on overdraft data from close to 3,000 banks and credit unions, reveals that credit unions have increased overdraft fees at a faster rate.
- Banks Fight Back Against Overdraft Reporting Requirement
American Banker 04 Jun 2013
The banking industry is responding negatively to a proposal that banks' financial reports to regulators include details of how much money they make from overdraft charges and other consumer fees...
- First Merchants Accused of Overdraft Fee Violations
Indianapolis Business Journal 29 May 2013
Indiana-based First Merchants Bank is being accused of reordering customers’ checking account transactions to drain accounts faster and make checks bounce more frequently, triggering millions of dollars in overdraft fees...
- Wells Fargo Ordered to Pay $203 Million in Overdraft Case
Reuters 15 May 2013
A federal judge once again has ordered Wells Fargo to pay $203 million to settle charges that it levied excessive overdraft fees, maximizing the penalties by purposefully processing transactions from the largest dollar amount to the smallest. The ruling brings back a penalty that U.S. District Judge William Alsup handed down in August 2012...
- Huntington Changes Policy on Posting Checking Transactions, Will Save Customers $25 Million in Overdraft Fees
Cleveland Plain Dealer (OH) 09 May 2013
Huntington Bank has changed how transactions are posted to its consumer checking accounts, potentially reducing the number of customer overdrafts. Banks traditionally process debits from the highest dollar value to the lowest, often causing one large transaction -- such as a mortgage payment -- to drain the account, leaving smaller transactions to bounce and rack up multiple overdraft fees...
- Small Banks Seek Exemption in U.S. Collection of Fee Data
Bloomberg 02 May 2013
The Independent Community Bankers of America has asked federal regulators to exempt them from what they call an unnecessary and onerous data-collection effort to spot how consumers may be fleeced by checking account overdraft fees and other charges...
- Mobile Tools, High Fees Quash Demand for Overdraft Protection
The Financial Brand 23 Apr 2013
Mobile banking and high fees have led to a decline in consumers' demand for overdraft protection. Bank revenue from overdraft fees fell in 2010 and 2011 because of Federal Reserve rules that changed how banks can charge for “overdraft protection.” Banks reported higher fee revenue in 2012 because of hikes in overdraft-related fees, but there are reasons to believe that these costs have hit a ceiling...