Protect everyone from abusive overdraft fees

To the editor,

A recent BankThink piece touted overdraft fee reforms voluntarily taken by a few banks as a reason to oppose legislation targeting overdraft practices. Although these reforms are important, they are limited in scope and impact. 

Consumers are still harmed by the many institutions that continue to maintain “expensive and excessive” overdraft programs that can “lead to account closures.” The Overdraft Protection Act would establish reasonable limits on the cost of and frequency of each overdraft fee — no more than six a year. 

The Overdraft Protection Act protects all consumers and is especially needed by struggling consumers who overdraft more than 10 times a year and pay nearly 80% of overdraft fees. 

Congress should enact this legislation, returning overdraft fees to their original purpose: to cover an occasional courtesy for a check that would otherwise bounce. Beyond that, banks can offer affordable overdraft lines of credit.

Carla Sanchez-Adams, staff attorney, National Consumer Law Center