Dems Will Continue Push to Rein In Overdraft Fees
The congressional Democrats leading the effort to protect consumers from overdraft fees said today that, despite Tuesday’s news that Bank of America and JP Morgan Chase will adopt some of those protections voluntary, there remains the need to make the safeguards permanent through legislation.
“These are positive changes, but the system has gotten completely out of whack,” Senate Banking Chairman Chris Dodd (D-Conn.) said in a statement. “We are talking about abusive practices that never should have been instituted in the first place. I will take a close look at the banks’ new policies as I continue work on a bill to permanently protect customers from excessive overdraft fees.”
Rep. Carolyn Maloney (D-N.Y.) reiterated that message, saying the voluntary changes at BoA and Chase mark “significant improvements,” but “what we need are consistent overdraft reforms for all Americans.”
Maloney already introduced a bill this year to rein in some of the practices that banks use to increase overdraft fees, which have grown into a $38 billion per year business. Dodd announced last week that he’ll be introducing similar legislation soon.