The Fed is proposing a new rule governing Banks' egregious overdraft fees, but it's weak and they need our help to make it stronger.
They are proposing a rule whether banks should be required to offer customers opt-in to overdraft programs or whether an opt–out mechanism is sufficient. The proposed rule deals solely with electronic fund transfers.
You can make a difference by:
I. Contacting the Fed by email at: regs.comments@federalreserve.gov. Make sure the docket number Docket No. R-1343 is in the subject line.
Ask the Fed to beef up it's proposal by including the following modest characteristics of Maloney's(D-NY) bill - HR-946:
A. Require notice to customers when an ATM or point-of-sale debit card transaction is about to trigger an overdraft
B.Require an opportunity for account holders to choose to have an overdraft plan or not. (FDIC reports that over 75% of surveyed banks automatically force their customers into an overdraft program and some do not allow customers to opt out and that isn't right.)
C. Prohibit manipulation of the order of posting deposits and withdrawals so as to maximize overdraft fees. (Charging the largest posting first even if it was the last thing you purchased that day so thay you pay mulitple OD fees instead one on the big ticket purchase.)
II. Contact your congressperson and tell them you support passage of HR 946, beefing up the FED rule and let them know how you feel about the following:
a. The GAO released a report showing that consumers are not told about, and can’t avoid, many overdraft fees.
b. In 2007, from the nonpartisan Center for Responsible Lending - Customers pay $17.5 billion annually in overdraft fees, up 70% from the $10.3 billion they paid in 2004.
III. Get out of the big banks and get into a local credit union or bank.