Has anyone read the overview of this? I just saw it today. The overview of the overview:
1. "...a bill was introduced in the Senate that, if passed, would prevent banks from charging customers any overdraft fees at all on some transactions." The precursor to this statement is talking about Reg E's opt in/out, so I assume the bill is attempting to completely remove ODs from debit card/ATM transactions.
2. "Banks would still be able to charge overdraft fees on check-based transactions, but the bill would limit banks to charging one overdraft fee per month and up to six per calendar year."
I understand trying to reign in overdrafts, but I think this may be going a little too far. Restrict it too much, so that there is absolutely no profit, and banks may refuse overdraft at all, and that can be a detriment to the customer. Ex. Instead of paying the electric bill, the bank returns the payment and still issues a return item fee (often the same amount as the overdraft fee); then the electric company will issue a returned payment fee; there's then the possibility that electric will be shut off - which requires a reconnection fee.
Personally, the better approach, IMHO, would be to limit the amount an overdraft charge can be (across all FIs, maybe a $10 cap per...). And/or placing restrictions on the amounts of transactions which can incur overdraft/return item charges...all transactions $10 or less cannot receive an OD fee. Take that a step further to state that while the bank has to right to refuse payment of the item, it may not collect a return item fee.
I'm just curious what others might think?????
_________________________
I reject your reality and replace it with my own.