Fed Restricts Overdraft Fees

Customers must opt in for coverage of ATM, debit transactions

By Nick McMaster, Newser Staff

Posted Nov 12, 2009 1:06 PM CST

(Newser) – Starting in July, banks will have to get consumers' explicit consent before authorizing an overdraft—and the accompanying fee—on debit and ATM card transactions. Since the advent of the financial crisis, overdraft fees have become the biggest source of consumer fee income for banks. Congress is also considering making the amount that can be charged a proportion of the transaction cost, USA Today reports.

"The final overdraft rules represent an important step forward in consumer protection," Fed chair Ben Bernanke said. "Both new and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service."

Customers use ATM machines at a Bank of America branch office, Friday, Oct 16, 2009 in Boston. (AP Photo/Lisa Poole)

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Fed Restricts Overdraft Fees

Customers must opt in for coverage of ATM, debit transactions

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Fed Earns Record $45B

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Customers must opt in for coverage of ATM, debit transactions

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OTHER STORIES ON OUR RADAR

Ben Bernanke • Federal Reserve • debit card • ATM • financial crisis • overdraft fee

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Foreign Banks Got Majority of Secret Fed Loans

Court forces Fed to release info

Banks Blitz Customers to Keep Overdraft Fees Coming

$20B in penalty fees threatened by Fed's new opt-in rule

Fed Earns Record $45B

Efforts to save economy result in windfall

'Formidable Headwinds' Hinder Recovery: Bernanke

Weak credit and labor markets mean recovery will be slow: Fed chair

Sen. Sanders Puts Hold on Bernanke Nomination

Independent's move could force Dems to scrape up 60 votes

About Us

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Newser By Users

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What is Newser?