Consumers have been waiting more than a year for the Federal Reserve to finalize it regulations on automatic overdraft programs. Finally the Agency has announced that the rule will be released in November of this year. The Fed has been taking its time deciding whether to implement an opt-in or opt-out rule. These early announcements make it sound like they will be doing the right thing and requiring consumers to opt-in before banks can enroll their customers in expensive overdraft coverage of ATM and debit transactions.

Meanwhile Senator Dodd introduced a bill today that will go farther to protect consumers, than the Fed's rule. Not only will Dodd's bill require consumers to Opt-In, it will go far to keep costs reasonable and programs fair for those consumers who do choose to have this type of transaction coverage.

Here are some of the unique protections found in the Senate overdraft bill.

- Banks will only be allowed to charge consumers who Opt-In, one fee per month with a maximum of six per year.

- Fees must be reasonable and proportional to the costs of processing the overdraft.

- Consumers can choose the method (text, email, letter) used to notify them that they have overdrafted.

- Consumers will be given notice at the ATM and a chance to cancel if they are about to overdraw their account.

Other important protections found in the Senate bill include restricting banks from manipulating the order of transactions to maximize fees, prohibiting fees if the overdraft was cause by a debit hold, and adding more up front disclosures about the fees on statements and in marketing materials.

Representative Maloney introduced her overdraft legislation earlier this year.