Going after greedy banksThere are plenty of reasons to distrust the banking industry these days, given the role it played in the collapse of the U.S. economy. While the industryÕs Wall Street shenanigans shenanigans
1. mischief or nonsense
2. trickery or deception [origin unknown] have grabbed the headlines, though, its propensity toward gouging Gouging can be:
Under the Radar is an American magazine that bills itself as "The solution to music pollution." It features interviews with accompanying photo-shoots. .
ThatÕs about to change, thanks to much-needed legislation that was introduced Monday by Senate Banking Committee Chairman Christopher Dodd This article or section contains information about one or more candidates in an upcoming or ongoing election.
Content may change as the election approaches. , D-Conn., and co-sponsored by Senate Majority Leader Harry Reid, D-Nev.
The Fairness and Accountability in Receiving Overdraft Coverage Act would require banks to obtain customersÕ permission before placing them in overdraft protection programs for ATM and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. transactions. Banks would also have to warn consumers when they have overdrawn o·ver·draw
v. o·ver·drew , o·ver·drawn , o·ver·draw·ing, o·ver·draws
1. To draw against (a bank account) in excess of credit.
2. their accounts, giving those customers the opportunity to cancel transactions before being slapped with penalties.
The legislation also would limit banks to one overdraft fee per month and six per year for each customer.
Reid, who said this legislation would restore fairness and accountability, was on target when he also said: ÒIf you are one of the many people suffering from the effects of this economy, something as simple as a $50 overdraft fee can really hurt.Ó
Banks rake in rake in
Informal to acquire (money) in large amounts
Verb 1. rake in - earn large sums of money; "Since she accepted the new position, she has been raking it in"
shovel in $17.5Êbillion annually in overdraft fees, according to the Center for Responsible Lending, a nonprofit consumer advocacy group in Durham, N.C. ThatÕs money that consumers could use to buy food or medicine or keep the lights on in their homes.
It would not be surprising to see banks put up a stiff fight against this legislation, as they have with other proposed reforms designed to avoid future economic failures. But consumers should band together and insist that banks dismantle overdraft rip-off schemes that have resulted in insurmountable debt for many people.
We would encourage Congress to take swift action to approve this legislation before more consumers fall into the cycles of debt that mounting overdraft fees help create.