Banks Rein In Overdraft Fees To Appease Congress, Avoid Needed Regulations

Posted in Checking Accounts by Jen Stryker
October 2, 2009 09:15 AM - 0 Comments

Bank of America, JP Morgan Chase and other banks have announced plans to rein in the outrageous overdraft fees they’ve been charging debit card customers.

But the modest changes they're making are only intended to appease Congressional critics and don't go far enough. They’re not doing this out the goodness of their hearts. They’re trying to stop Congress from cracking down on their abusive practices.

But lawmakers shouldn’t be fooled by the modest voluntary changes the banks are proposing.

New rules are needed to stop the banks from covering the losses on their reckless lending by collecting $39 billion a year in overdraft fees from surprised and unsuspecting checking account customers.

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