Bounced-Check Fees Targeted by Banking Bill in Senate

July 22, 2013
Columbus Business First  
overdraft news

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. The "high-to-low" approach can trigger multiple overdraft fees for account holders, at an average of $34 apiece, according to a recent report by the Consumer Financial Protection Bureau. Fees for bounced checks, the study revealed, topped $32 billion last year. Brown is proposing greater transparency on the part of banks, however, so that customers are able to make informed decisions about where to bank. His bill would direct the CFPB to develop a model that is fair to both banks and their customers. Banks that adopt the model would receive a buffer against litigation in return.
Web Link -
May Require Free Registration

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.