federal reserve

Branch Employees Often Give False Info about Overdraft Fees: Consumer Groups (American Banker)

Only 14.3% of customers at big banks had overdraft coverage in 2011 and 2012, according to the Consumer Financial Protection Bureau.

But for the minority of consumers who do opt in, overdraft fees can be enormously expensive. Around 8% of consumers paid overdraft fees at least 10 times per year, which cost them an average of $380 annually, the CFPB says.

Bank overdraft programs cause widespread confusion, new report shows

Written by Dory Rand on August 4, 2014 - 3:12pm

Read the report

The four organizations conducted 64 mystery shopping visits at 39 bank branches in Chicago, Durham, New York City, and Oakland, including Bank of America, BB&T, BMOHarris, Capital One, Chase, Citi, SunTrust, and Wells Fargo. In Chicago, mystery shoppers visited Bank of America, BMO Harris, Chase, and Citi.

How Banks Sell Overdraft: Results of Overdraft Mystery Shopping in Four Key States

Written by Woodstock Institute, California Reinvestment Coalition, New Economy Project, Reinvestment Partners on August 1, 2014 - 10:53am

Four organizations—California Reinvestment Coalition of Oakland, CA; New Economy Project of New York, NY; Reinvestment Partners of Durham, NC; and Woodstock Institute of Chicago, IL—conducted 64 mystery shopping visits at 39 bank branches in Chicago, Durham, New York City, and Oakland. The four largest banks by deposit size in each city or state (California) were selected, including Bank of America, BB&T, BMO Harris, Capital One, Citibank, JPMorgan Chase, SunTrust, Union Bank, and Wells Fargo.

Comment today on CRA guidance

The regulators released proposed changes to their documents that implement CRA (called Interagency Questions and Answers).

We have until May 17 to comment on these proposed changes and let regulators know that they don’t go far enough, so please act today!

Your comments matter. Regulators will be hearing from legions of bank representatives, and we need to make sure that they hear from advocates as well. Here is a sample comment letter that we encourage you to personalize and send to regulators:

Regulators curb worst bank payday lending practices

The proposed standards require an assessment of the borrower’s eligibility for the product and financial capacity  to repay the loan and meet other financial obligations, limit the number of such loans borrowers can receive in one year, and mandate adequate management and monitoring of the significant safety and soundness risks posed by offering these high-cost, short-term loans.  The public has an opportunity to comment on the proposed guidance. 

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