Protecting Consumers from Unexpected Overdraft Fees
Elizabeth Warren introduces Andrew Giordano, a retired Baltimore police officer and Vietnam veteran who manages a fitness center for seniors.
In 2009, his bank made a mistake that caused confusion about a replacement debit card for one of his accounts and automatically enrolled Andrew in an “overdraft” protection that he never asked for—a practice that has since been prohibited.
Andrew was hit with hundreds of dollars in overdraft fees and when he discovered the bank’s error and explained the situation, the bank was willing to refund only part of the fees.
The Consumer Financial Protection Bureau will examine big banks to ensure that they are following the rules that now require banks to give consumers a real choice of whether to join overdraft protection programs for ATM and debit card transactions.
The CFPB will update those rules to respond to changes in the marketplace over time. Learn more at www.consumerfinance.gov.
Who else can relate to this? Watch the video for more and leave your comments below.