Rep. Maloney Calls For Crackdown On Excessive Overdraft Fees
NEW YORK (CBSNewYork) — Some elected officials and consumer advocates want to put banks in check when it comes to excessive overdraft fees.
As WCBS 880’s Monica Miller reported Saturday, a cup of morning coffee for a few bucks has cost some consumers $35.
“There can be an overdraft fee for as little as a penny,” said U.S. Rep. Carolyn Maloney (D-N.Y.)
For that reason, Maloney has introduced an overdraft protection bill to give more transparency and ban the practice of manipulating the order of checks that are cashed.
“Where often times they will take the largest check and process it first, thereby forcing overdraft on a series of smaller checks,” Maloney said.
Chuck Bell of Consumer Reports Magazine said some banks are getting rich off the programs.
“Sixty percent of the fee income earned by banks is coming from overdraft programs,” he said.
Although regulatory reforms already have been passed, overdraft penalties are still bringing in about $31 billion a year, according to a Time Magazine report.
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