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Less Than Zero: How Overdraft Fees Can Clean You Out

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Less Than Zero: How Overdraft Fees Can Clean You Out


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."

...

"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:

...

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.]

...



Message Edited by masdeocho on 08-24-2007 10:41 AM
Message 1 of 3
2 REPLIES 2
Member

Re: Less Than Zero: How Overdraft Fees Can Clean You Out

very interesting read;
 
what would be the status of a checking a/c that was overdrawn and over draft fees
added to the account and that account had no activity in 5 plus years when the SOL
for that state is 3-5 years in credit items?
 
Message 2 of 3
Moderator Emeritus

Re: Less Than Zero: How Overdraft Fees Can Clean You Out

This could just say "Compass Bank is on the radar of Congress"

I am currently in "Arbitration" with them with a lawsuit pending the results.
Message 3 of 3
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