Schumer to Fed: Consumers Need Clarity on New Checking Fees

eCredit Daily
June 27, 2010

As banks begin charging new checking account fees, Sen. Charles Schumer (D-N.Y.) has asked Federal Reserve Chairman Ben Bernanke to ensure that banking customers will get sufficient and clear notice of any charges that will be imposed. Getting rid of free checking accounts is one of the ways banks are responding to anticipated major declines in revenue from debit card fee restrictions and other reforms already in place -- including legislation that requires customers to opt in for overdraft protection. Schumer wrote to Bernanke, "It is essential that the Federal Reserve make sure that financial institutions provide clear and transparent guidance to consumers as these additional fees are implemented, so that consumers are not penalized during this transition." Some banks are considering maintenance fees on checking accounts for customers who do not meet certain requirements, such as a minimum balance or certain number of deposits and transactions per month. In his letter, Schumer added, "Given the current economy, it is imperative that the Federal Reserve work to prevent banks from imposing additional, hidden fees upon consumers who are struggling to pay their bills."
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