Letter to the Federal Reserve System Bringing Attention to Abusive Overdraft Practices and Urging Them to Choose the Stronger Opt-In Proposal

Publish Date: 
March 30, 2009
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We, the undersigned civil rights, labor, consumer, housing and community groups, write to thank the Federal Reserve Board for bringing attention to abusive overdraft practices while urging you to choose the far stronger opt-in proposal.1 For a rule addressing fee-based overdraft to adequately protect consumers, it must at a minimum require institutions to obtain consumers’ affirmative consent. An opt-out arrangement will do little to alter the status quo.