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U.S. Consumer Financial Protection Agency Director Richard Kede Lei, 22, announced that the proceed with the survey of bank checking account overdraft charges.

initiate an investigation

Kede Lei said in a statement that day: “In today’s technological conditions, consumers have more opportunities to enter the checking account and the occurrence overdraft … evidence that the overdraft items are not properly affect low-income groups and young consumers. “

In the U.S., the checking account for daily pay, generally non-interest bearing. Deposit account for savings, generally do not often draw, there is interest, rarely allotted the automated teller machine (ATM) card.

many consumer rights organizations have complaints, and even checking account overdraft to buy a cup of coffee, consumers will experience the highest per $ 35 overdraft fine.

the American Bankers Association, said most consumers are in fact without having to pay overdraft penalty, consumers can deposit enough money in the checking account or checking account and deposit account associated.

However, the Consumer Financial Protection Agency worried that some banks may be calculated to mislead or confuse consumers and charge overdraft fine. The survey shows that 9% of the checking account consumers bear 84% of the overdraft fine. According to the U.S. Federal Deposit Insurance Corporation data, the annual overdraft consumers of 20 or more times the annual per capita payment of $ 1,610 overdraft fine.

collect information

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regardless of JPMorgan Chase, Wells Fargo and other big banks or small financial institutions, retail businesses generally rely on overdraft fees profit.

this charge does not exist 15 years ago. According to data Mo Busi services company last year, the 2011 U.S. banks and credit institutions charge consumers overdraft fees totaling $ 38 billion.

Consumer Financial Protection Agency statement will be directly obtained from a number of large banks of information, but without pointing to which the bank will become the object of “cooperation”.

Consumer Financial Protection Agency, set up after Congress in 2010 through the financial regulatory reform bill, aimed at the eradication of fraudulent financial operations within the jurisdiction of the credit cards, mortgages and other financial products. The

, collecting feedback

Consumer Financial Protection Agency also will collect public feedback, understanding the consumer the amount of overdraft and overdraft fines.

Kede Lei said: overdraft operations can pose a serious economic harm to the crowd of the lowest ability to pay. We want to know what effect to consumers, and how they foresee and avoid overdraft fine. “

According to data provided by the Consumer Financial Protection Agency, the checking account each overdraft fines ranging from 30-35 U.S. dollars, an increase of 17% over the past five years.

overdraft fine exacerbate tensions between the banking and regulatory bodies in the past few years. U.S. Federal Reserve and Federal Deposit Insurance Corporation have overdraft fine to take restrictive measures. Among them, the Federal Reserve to prohibit banks ATM and debit card transactions are automatically designated as the overdraft transaction, unless the consumer to choose the overdraft protection services. However, these measures do not apply to credit card, online bill payment transactions.

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