Call for banks to curtail overdraft fees

     The Federal Deposit Insurance Corp., lawmakers and the public have increased pressure for banks to reform their assessment of overdraft fees, USA Today said.
     If banks continue at a steady rate, they will bring in a record $43.6 billion in fees charged to customer's checking accounts, mostly for overdrawing, The Wall Street Journal said.

     The Federal Reserve needs to set the standards for how to determine fees, FDIC Chair Sheila Bair said in an interview with USA Today.

     Some analysts warn that restricting bank's fees will make it more difficult for the economy to recover. Banks have been using money from overdrafts to compensate for loans that have been badly affected by the financial crisis, The Wall Street Journal said.

     The two articles referenced above, one from USA Today and one from The Wall Street Journal, present relatively identical information very differently.  The former focuses on the need for banking reform, citing various officials who support systemic changes. The latter quotes more facts and figures with less editorializing and zero assumptions.

     The Wall Street Journal does add a subjective angle in the last few grafs.  It quotes a VP from a smaller bank whose fees have remained stable through the economic crisis. This struck me as a not-so-subtle hint that consumers can always seek a less mainstream option and save money with a little time and effort. Of course, if consumers kept better tabs on their balances (no pun intended), there would be no overdraft activity on which banks could capitalize.  



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This page contains a single entry by ellio244 published on September 28, 2009 10:05 PM.

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