Defend Your Dollars is the website of the Consumers Union Financial Services Campaign, where we support reforms to the financial marketplace to curb bad practices by banks and lenders.
Overdraft
Overdraft programs are really high-cost, short-term loans with quadruple digit APR rates. Until recently banks could automatically cover your transactions when there's not enough money in your account, and charge an astronomical fee for this service without your permission.
The Federal Reserve Board has issued final rules which give consumers the right to OPT-IN to these expensive programs. This means that a bank cannot charge you a fee if you overdraft using your ATM or debit card, unless you explicitly sign up for their program.
Before signing up, remember that there are often much cheaper options for covering overdrafts.
Policy and Legislation
- CU letter to Wells Fargo responding to Gutierrez v. Wells Fargo decision (August 20, 2010)
- Group comments to NCUA proposed rule on short term loans (July 6, 2010)
- Followup Group Letter to Chase about Overdraft (May 19, 2010)
- Group letter to Chase about their Overdraft Solicitation (May 10, 2010)
- Group comment on clarifications to the Fed’s final overdraft rule (March 30, 2010)
- CU supports strong overdraft legislation in the House and Senate (November 13, 2009)
- CU testimony in support of the Overdraft Protection Act of 2009 (October 30, 2009)
- Testimony on Credit Cards (HR 627) and Overdraft Fees (HR 1456) (March 19, 2009)
- Read CU's overdraft comment on the December 2008 overdraft proposal (March 12, 2009)
- Coalition endorses bill to cap interest rates (March 2, 2009)
- Summary of December 2008 overdraft proposal (January 27, 2009)
- Federal Reserve Board’s December 2008 overdraft proposal summary (January 26, 2009)
- Read the whole December 2008 overdraft proposal (December 21, 2008)
- Comments on proposed rule to curb unfair overdraft practices (June 27, 2008)
- Consumer groups seeks stronger protections for military borrowers (February 25, 2008)
Consumers Union News Releases
- New overdraft protections start August 15 (August 12, 2010)
- New protections from high overdraft fees start July 1 (June 30, 2010)
- Federal Reserve Board Issues New Rules On Bank Overdrafts (November 12, 2009)
- CU: Just say "no" to costly overdraft programs (October 19, 2009)
- Consumers need opt-in on overdraft programs (March 12, 2009)
- Consumer group's press release on December 2008 Overdraft Proposal (December 22, 2008)
- Congress should curb overdraft loan fees (March 7, 2008)
Research and Reports
- Overdrawn! The Documentary (March 31, 2009)
- Payday loans and overdraft fees (February 24, 2009)
- Summary of December 2008 overdraft proposal (January 27, 2009)
- 2008 Fee Study of Bank and Credit Union Overdraft Programs (January 9, 2009)
- Jury’s out on abusive overdraft loans proposal (December 22, 2008)
- FDIC study of Bank Overdraft Programs (November 17, 2008)
Consumer Tips
- Get the Facts about Overdrafts and Fees (June 29, 2010)
- Steps to Safely Move Your Money to a New Bank Account (April 22, 2010)
Blog Posts
- NBC's Overdraft Report- Watch It (August 26, 2010)
- DYD to Wells Fargo: "STOP" (August 24, 2010)
- Wells Fargo's unfair overdraft practices EXPOSED (August 11, 2010)
- As the July 1st deadline approaches, CFA warns consumers not to Opt-In to Overdraft. (June 29, 2010)
- Bank of America gave us a little and then took it away! (June 18, 2010)
- Working to improve Chase’s Overdraft Opt-in Solicitations (June 14, 2010)
- You're gonna save $5 billion in credit card and overdraft fees this year! (May 18, 2010)
- Senate debate on financial reform heats up (May 5, 2010)
- Moving Your Money? Use these tips to do it right! (April 22, 2010)
- Chase Bank's Overdraft Opt-in System: FAIL (April 8, 2010)
- Bank of American finally does the right thing on overdrafts (March 10, 2010)
- OPT-IN VICTORY !!! (November 12, 2009)
- Dodd introduces the best overdraft protections yet (October 19, 2009)
- Call Bank of America—Opt Out of Automatic Overdraft!! (October 19, 2009)
- Win Count: Consumers 1 Banks $700 Billion (September 25, 2009)
- Daily Show Awesomeness- Overdrafts (August 25, 2009)
- Treasury Releases Report: Financial Regulatory Reform: A New Foundation (June 17, 2009)
- CU overdraft activists are in the news! (March 26, 2009)
- Those pesky overdraft fees--the Fed needs to hear from you too! (March 12, 2009)
- Second Chance for Opt-In to Overdrafts! (January 26, 2009)
- Last Chance to Tell the Fed Your Credit Card Story (July 28, 2008)
- Challenge: What Type of Overdraft Service Do You Have? (June 23, 2008)
- Who’s Holding Your Money? (May 19, 2008)
- Got Money? (October 18, 2007)
- America's banks missing the mark on banking fees (August 27, 2007)
- Overdrawn? (July 6, 2007)
Partner Organizations
Center for Responsible Lending
A nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices.
WHAT'S HOT
Tell Us Your Story!
What banks call "overdraft protection" is really just a high cost, short term loan that amounts to more than the overdraft itself. We want to hear your experience with overdraft fees so we can fight for better protections for you. Your account of what has happened to you will help us push for real reform.
We want to hear from you. Your willingness to share your stories helps us pass laws to protect you and your family.Read stories from individuals who have shared their stories, like:
Justin of Crestone, CO
In October 2008 Justin’s credit card deducted $250 from his checking account as part of his monthly auto-pay – he was unaware that he had less than $250 in his account at the time.
How to complain to the Government
Online, by mail, phone or fax... Agencies need to hear from you!
Stay informed about Overdraft Loans with
