Dodd to Fed: Kill Banks' “Abusive” Overdraft Fees

Sen. Christopher Dodd wants the Federal Reserve to pull rank and stop banks from charging “abusive” overdraft fees.

The Credit Card Accountability Responsibility and Disclosure Act, which Dodd was behind, creates an opt-in regime for over-the-limit fees for credit cards. Dodd, chairman of the Senate Banking Committee, wants a similar “opt-in,” well option, that would mean banks cannot charge overdraft fees without a customer’s consent. 

“I am concerned that some financial institutions may be increasing overdraft fees or creating new ones, which often take consumers by surprise and may bear little relation to the actual amount of overdraft,” Dodd said in his letter to Fed Chairman Ben Bernanke.  “I therefore ask that you finalize the proposed rule as soon as possible to protect families across America and in my state of Connecticut from predatory overdraft practices.”
 

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