The latest news on overdraft fees, overdraft fees and other bank fees from the Center for Responsible Lending.
- 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...
- U.S. Overdraft Fees Jump to $32 Billion as New Rules Prove Ineffective
Huffington Post 29 Mar 2013
Americans paid more in overdraft fees last year, although a measure was passed in 2010 to curtail abusive overdraft charges. A report by Illinois-based Moebs Services found that banks and credit unions increased their 2012 overdraft fee earnings by 1.3 percent over the previous year to $32 billion...
- House Democrats Introduce Overdraft Fee Bill
American Banker 21 Mar 2013
Reps. Maxine Waters (D-Calif.), Carolyn Maloney (D-N.Y.), and 44 co-sponsors have proposed the Overdraft Protection Act to address concerns about the fees that banks charge customers who spend more money than is available in their accounts...
- Overdraft Revenue Makes First Climb in Three Years: Report
American Banker 19 Mar 2013
Overdraft revenue at banks, thrifts, and credit unions hit $32 billion in 2012, up 1 percent from 2011, reports Moebs Services. The total represents the first increase since 2009, when financial institutions raked in $37.1 billion in from overdraft fees. The steepest penalties are found at the biggest banks...
- Overdraft Rules Get Go-Slow Approach at Consumer Bureau
Bloomberg Businessweek 28 Feb 2013
The Consumer Financial Protection Bureau (CFPB) has decided not to take severe action just yet to tighten rules on checking overdraft fees. CFPB director Richard Cordray said no decisions have been made about new rules but indicated that the agency will work on the matter “over the next couple of years.” Consumer groups want tougher overdraft rules, arguing that a 2010 Federal Reserve rule requiring banks to secure consumer consent before charging the fees did not go far enough. "Overdrafts are rife with predatory features: they are high-priced, short-term and repaid directly from customers' accounts," declared Rebecca Borne of the Center for Responsible Lending (CRL). "None of that has changed." The organization believes that about a third of U.S. consumers are choosing overdraft services under the Fed rule; while Moebs estimates the opt-in rate on the high end at 77 percent and the Consumer Bankers Association puts it at the low end at about 17 percent. Cordray also said that the CFPB is considering whether conflicting rules from different federal regulators harms oversight of overdraft fees.