In 2009, the Federal Reserve announced rules for overdraft fees: “Institutions [are prohibited] from charging consumers fees for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless a consumer consents, or opts-in, to the overdraft service for those types of transactions.” Not only does the consumer need to opt-in, but also be “provided a notice that explains the financial institution’s overdraft services, including the fees associated with the service, and the consumer’s choices.” The final rule went into effect on July 1, 2010.
While states have specific regulations regarding overdraft fees, it is also important to know that a bill was introduced in 2021 and sent by the House to the Committee on Financial Services. As of October 2022, The Overdraft Protection Act is still being amended by the committee. HR 4277 aims to “amend the Truth in Lending Act to establish fair and transparent practices related to the marketing and provision of overdraft coverage programs at financial institutions, and for other purposes.”
Peiffer Wolf is currently investigating banks and credit unions for their overdraft fee practices. If you have not opted-in or your bank never disclosed the overdraft fees before charging you, you may deserve compensation. Contact Peiffer Wolf by filling out an online contact form or by calling 314-833-4827 for a FREE Consultation.