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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 on the same day: “In today’s technological conditions, consumers have more opportunities to enter the checking account and overdraft … evidence to suggest that the overdraft items are not properly affect low-income groups and light consumers.

In the United States, 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 complained, even if using a checking account overdraft to buy a cup of coffee, the consumer will experience the highest per overdraft of $ 35 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, each overdraft consumers per capita payment of $ 1610 overdraft fine of 20 times or more.

Regardless of JP Morgan Chase, Wells Fargo and other big banks or small financial institutions, retail business in general rely on the overdraft charges profitability.

Collecting feedback

The charge 15 does not exist. Mo Busi services company to data banks and credit institutions in the United States 2011 charge consumers overdraft fees totaling $ 38 billion.

Consumer Financial Protection Agency statement will obtain information directly to a number of large banks, but no pointing to what the bank will become the object of “cooperation”.

Consumer Financial Protection Bureau set up after Congress 2010 by 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.

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 over the past five increased by 17%.

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