Overdraft Fees Rising Despite Regulatory Efforts, Groups Find

Publication: The Washington Post

Author: Amrita Jayakumar


06/07/2012 - Checking-account overdraft fees have jumped during the past two years, despite an effort by regulators to rein in aggressive practices by banks, according to new reports by two nonprofit groups.

Although the basic overdraft fee of $35 hasn't changed in two years, banks have imposed other harsh penalties on consumers for minor lapses, the papers said.

The Pew Charitable Trusts, a research organization, called for the new Consumer Financial Protection Bureau to press banks to be more upfront about these "still risky" fees in a paper to be published Friday.

Another report, released Thursday by the Consumer Federation of America, an advocacy group, expressed similar concerns and urged consumers to inform the CFPB of high overdraft fees.

Although the Federal Reserve in 2009 required banks to tell customers about overdraft penalities, the disclosure statements were often unclear and tough for consumers to follow, the two reports said.

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Read the full article, Overdraft Fees Rising Despite Regulatory Efforts, Groups Find, on the Washington Post's website.

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