As you know, without offering their customers a say, large banks have been recently charging their customers an alarming amount of overdraft fees.  Fees in excess of $35.00 per incident are causing us, their customers, to rack up hundreds of dollars in fees within hours or days. 

Calling “overdraft protection” a courtesy, many banks have not notified us that an overdraft is pending, and therefore do not allow us the choice of cancelling the purchase.  Also, most banks will even change the order of transactions to generate more and greater fees.  Even the most steadfast capitalist can see this as cynical attempt by the banks to create revenue from the personal hardship of their customers.

And creating revenue it does…to the tune of 39 billion dollars.  Because the banks did not allow us a choice to accept or deny this “courtesy”, an argument can be made that these fees have been collected improperly, if not criminally.  This is especially true if the customer asked to be released from this policy and was denied the opportunity. Any person whose found themselves with dollars to spare at the end of the month, would certainly rather be denied a purchase than pay hundreds of dollars in fees for overdrafts sometimes as small as $10.

This is clearly outrageous.  Especially for those of us who repeatedly pleaded to be let out of the “overdraft protection” courtesy.  As you consider legislation to end this abusive practice, please do not let the banks off the hook by allowing them voluntarily change this policy…as many already have.  The number of banks who changed this policy so quickly should be a red flag as to the seriousness of this abuse. It must be implicit in the legislation that money taken from bank costumers without their permission should be accounted for, and returned…with interest.

Legislation without consequences will ensure that banks will continue to look for improper ways to enrich themselves on the backs of helpless consumers.

Thank you,