By Natasha L. Foreman, MBA
Jackie Stewart of Source Media reported that bankers, consumer advocates and other industry members met on Wednesday to hear officials from the Consumer Financial Protection Bureau outline their concerns about banking overdraft practices.
Sarah Ludwig, executive director of the Neighborhood Economic Development Advocacy Project accuses banks of failing to serve low-income people and communities through the abuse of overdraft protection. A senior VP at Bank of America Corp (B of A), Andrew T. Rowe explained that B of A communicated directly with their customers about the bank’s overdraft protection practices, and after hearing customer complaints about surprise charges for money they didn’t have, B of A made the decision to eliminate overdraft at the point of sale.
Citigroup Inc.’s managing director of global consumer banking, governance and external affairs, John P. Carey said that banks need to learn to distinguish between ATM and debit transactions with other forms of payment when dealing with overdraft protection, because customers would rather receive an occasional overdraft payment than a returned check
Ludwig wrapped up Stewart’s article stating that the goal should be “…fair, affordable, decent, beneficial, nonpredatory practices.”
What are your thoughts on this issue?
Source: American Banker, Thursday, February 23, 2012, Regulation & Reform section. Jackie Stewart: firstname.lastname@example.org
Copyright 2012. Natasha L. Foreman. Foreman & Associates, LLC. Some Rights Reserved.