Released: November 02, 2009

Congress prepares to curb bank overdraft fees

Source: Kathy Chu, USA Today

The movement to reform bank fees is accelerating as Congress takes aim at controversial industry policies that encourage consumers to fall into debt on their checking accounts.

The House Financial Services Committee blasted banks and credit unions at a hearing Friday for routinely paying consumers’ overdrawn transactions, then charging them steep fees. These fees have bolstered banks’ balance sheets during the recession while turning debit cards — which the industry often advertises as a product to help you manage your money — into a debt trap for some consumers.

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