The Federal Reserve Board is asking for comments from ordinary citizens like you and me on two proposals aimed at lowering unexpected overdraft fees.
The proposals tackle the fact that financial institutions have been known to automatically enroll customers in overdraft programs that charge a fee whenever customers exceed their account balances. Instead of preventing the transaction from going through, banks allow the overdraft then charge you a whopping $10 to $38 per transaction. Just what you need when money is tight, right?
Of course, many people benefit from overdraft protection, but these proposals address those who were unknowingly signed up for the service. One proposal is to prevent institutions from charging overdraft fees unless they let customers know first and offer the chance to opt-out.
You can file a comment before the March 30 deadline on the Consumers Union website.