"U.S. regulators are stepping up scrutiny of overdraft fees charged by banks, a big revenue stream that is helping the industry lessen the hit caused by low interest rates and the sluggish economy. The Consumer Financial Protection Bureau, in a report set for release Tuesday, plans to criticize the U.S. banking industry for practices that it says range from confusing rules on overdraft fees to increasing the likelihood of multiple fees being charged to the same customer. The agency, created by the Dodd-Frank financial-overhaul law in 2010 to be a powerful voice for consumers, said it has no immediate plans to issue or recommend new overdraft-fee rules. But the report is the strongest signal yet that the CFPB is burrowing into the controversial fees, which generated about $32 billion in revenue in the U.S. last year, according to research firm Moebs Services Inc." "While bankers praise the agency for being more responsive than they expected in several areas such as mortgage lending rules, they still have complaints about the new regulator. For example, the agency has built a detailed database of consumer complaints and solicits them on its website." "The agency also is expected to criticize banks for deducting larger transactions before smaller ones. In May, a federal-court judge in San Francisco ordered Wells Fargo to pay customers $203 million for engaging in the practice."
Posted on: Tue, 11 Jun 2013 19:07:23 +0000
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