CU overdraft activists are in the news!

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Thursday, March 26th, 2009

During the last couple weeks, reporters around the country and across the web have been reporting about automatic overdraft loan programs and some of the articles highlighted Consumers Union activists who have shared their overdraft horror stories with us!

Don from Ohio was highlighted in a story by the LA Times. Don didn’t know he was enrolled in his bank’s overdraft protection plan until he overdrew his checking account by 85 cents! We contacted Don after he commented on our blog back in January.

Nancy from Florida shared her story with us and it ended up in USA Today! In the article Nancy emphasized that, “'[h]igher overdraft fees hurt consumers and the economy, Tersigni says.’It’s ridiculous that the very banks that we’re bailing out as taxpayers are charging us $35 for each overdraft,’she says. ‘That’s money I could be dumping back into the economy.'”

The media has been highlighting the issue because there are only a few days left to tell the Federal Reserve Board what you think about their proposal to regulate overdraft programs. The deadline is March 30th!

Consumers Union and other consumer groups are pushing for the Fed to adopt the Opt-In approach to regulating overdraft programs. This means that the bank won’t be able to charge you a fee for covering your transaction, unless you’ve signed up for the program.

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