The regulatory war on the banks continues…article, “Regulator berates bankers for overdraft fees“, snippet:
“WASHINGTON (MarketWatch) — A top bank regulator on Wednesday charged that some community banks abuse overdraft protection programs to the detriment of consumers who don’t realize they have better credit options.
“We believe that this [overdraft protection] is a legitimate product if it is used properly. By “properly,” I mean that it should be offered as a convenience to customers that is used sparingly, not operate as a thinly disguised credit product that consumers use routinely as an alternative to payday loans or other such products,” said John Walsh, Acting Comptroller of the Currency at a community bankers event in San Diego.”
So, the regulator holds the banks responsible because their customers are said to be misusing the overdraft service offered by the banks…or the consumers who misuse the overdraft product and write bad checks aren’t responsible, the banks are.
I disagree…its the consumers who are writing the checks that overdraw their accounts. In any shape or form, I can’t see how banks are forcing these people to write bad checks…all the banks are doing is seeing to it that they are paid for a service or product they provide. At my bank, one has to sign up for overdraft services of which I declined.
And listening to a Treasury Department official natter and complain about overdrafts when the federal government he represents is running a $1.6Trillion dollar overdraft itself, just this year alone, is more than just merely ironic, IMHO.
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