by Laura Rowley
Posted on Thursday, July 26, 2007, 12:00AM
"Ever use your debit card and overdraw your checking account, only to later discover that the bank lent you the money -- at a fee -- to cover the overdraft?
Do the math. You may find that you paid an effective 3,000 percent annual interest rate on a courtesy loan you never asked for."
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"Help on the Horizon
Representatives Carolyn Maloney (D-N.Y.), Barney Frank (D-Mass.), and Julia Carson (D-Ind.) are sponsoring legislation (HR 946, or the Consumer Overdraft Protection Fair Practices Act) to protect consumers from abusive overdraft policies. The act contains four common-sense provisions to address some of the industry's sneakier tactics. It would:
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• Prohibit financial institutions from manipulating the order of check clearing or delaying the posting of deposits to increase customers' overdraft loan fees." [Noah: Penalty for this should involve a stout oak, a sturdy rope, and skittish horse.]
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Message Edited by masdeocho on
08-24-2007 10:41 AM
