Missing money?

Banks pulled a fast one with debit card overdrafts

The best case for reforming bank overdraft programs is the fact that now, for many people, using a “free” debit card ends up costing them a lot of money.  Congress is considering new rules to rein in the worst overdraft practices, a move we need to encourage.

It used to be safer to carry a debit card than a credit card, because it couldn't get you into trouble with debt. But now the large majority of bank and credit union customers are enrolled in overdraft programs where debit card transactions are routinely approved, even when their customers don't have the funds.

Debit card shortfalls average $17, so customers are in effect paying a very high fee, typically $34, to borrow a few dollars for a few days.

Learn more about why debit cards are dangerous.

The banks say that's what people want. We know, after hearing from thousands of you, that what you really want is fair treatment and a banking system you can trust.

Congress has heard you too, and now you can help stop the funny business in bank overdraft practices.

New proposals in the House and Senate are under debate. Both would make banks get your explicit permission before enrolling you in overdraft systems that charge high fees for small overdrafts. Both would stop unfair practices like re-ordering your debits from highest to lowest to cause more fees.

Tell your members of Congress today to support H.R. 3904 and S. 1799, no nonsense reforms of sneaky overdraft practices.

Subject: Support S. 1799 and H.R. 3904 for fair overdraft coverage

Dear [decision maker name automatically inserted here],

I am asking for your full support for S. 1799, introduced by Senator Dodd, and H.R. 3904, introduced by Congresswoman Maloney.

Sincerely,

[Your Name]