Letter to the US House of Representatives, and the US Senate Applauding Support of the Fairness and Accountability in Receiving (FAIR) Overdraft Coverage Act of 2009

Publish Date: 
October 28, 2009
| Filed under: 

Overdraft loans cost consumers nearly $24 billion each year and are typically charged without consumers’ explicit consent. Fee-based overdraft coverage is, by far, the most expensive way to have an overdraft covered. But financial institutions typically automatically enroll their customers into this coverage, rather than encouraging them to choose among lower cost options. Often, these financial institutions then manipulate the order in which they post transactions, which further maximizes fees.