FED: "Banks Need Customer Consent on Overdraft Fees"

[cjhutch]

Why? Because people don't read the terms of their checking accounts when they sign up? Or because they don't ask questions when opening new accounts? Banks cannot charge fees that were not disclosed to the customer.

Since you couldn't comprehend my post with me including the quotes I will break it down for you. The person above you made a comment about the Federal Reserve regulating banks. Judging by the use of the word "Great" at the end combined with recent events involving government intervention there is an implied sarcasm. You quoted that with "bingo" meaning you agree with what was posted. I then proceeded to tell you both that you need to learn what the role of the Federal Reserve is in order to make an educated post. Since you have now failed twice I will spare you a third failure.

The Federal Reserve was formed as a central banking system in response to numerous issues with banks around the country. In short the job of the Federal Reserve IS to regulate banks. Therefore sarcasm should not have been used because the Federal Reserve is doing the job it was created for.

[green91]

The Federal Reserve was formed as a central banking system in response to numerous issues with banks around the country. In short the job of the Federal Reserve IS to regulate banks. Therefore sarcasm should not have been used because the Federal Reserve is doing the job it was created for.

Overdraft and other operational fees are a means of making profit for a bank. Yes, the role of the Federal Reserve is to regulate some portions of bank operations. My concern is that with to much government regulation (as seen with coerced sub-prime mortgages) that banks will have a harder time being profitable and will in turn have to raise fees or interest rates elsewhere to make up for the loss of income from these fees. Its ridiculous to me that consumers would sign up for services knowing well of these fees such as overdraft, then yet complain to congress and other representatives when they are charged for them.

[cjhutch]

True, but the rule just states that all they have to do is get consent from the customer. Nowhere does it state that banks have to stop overdraft fees or reduce them. It's really not that big of a deal. I know when I signed up with my bank it was there in bold print the amount of the overdraft fee. I also know that not all banks do this and rely on the fine print instead. As far as making it hard for banks to make money I don't think that will be a problem. Have you seen how much they charge to use an ATM nowadays. I went to an ATM the other day because a friend needed to borrow $20. I drive up and there is a fee of $3.00 for the transaction. That's like taking out a 15% interest loan on myself for $20. I went to WalMart and just got cash back on a purchase instead. Banks are also aware of this and I can see them initiating some fee that is triggered whenever you get cash back on a purchase that doesn't equal a certain dollar amount.