The Fed knows something smells fishy with overdraft –
but do they know just how bad it stinks?

In new proposed rules, the Federal Reserve Board has acknowledged that banks are using unfair overdraft practices. But their solution doesn’t go far enough.

Tell the Fed your overdraft story so they will stop unauthorized overdrafts.

New rules would not require banks to obtain consent from customers before enrolling them in their most expensive option for covering overdrafts, but would only allow them to opt out of the program after the fact. Consumers should not have to “unsubscribe” from this costly system.

Under prevailing practices, banks can intentionally maximize the overdraft fees you pay by automatically approving debit card purchases that throw your account balance into the negative and by manipulating their debit-clearing systems. At the least, the Fed should make them get your approval before charging you these fees, which now average $34 per incident.

If you’ve been burned by overdrafts, the Fed needs to hear your story by August 4, when the official comment period is over. You can tell them what happened in the box below.

The comments you submit will be part of the Federal public record made available to the public online and in paper form. Your name and address may be included as part of your comment.

Dear [ Decision Maker ] ,

Sincerely,

Campaign Launched:
May 30, 2008