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The Consumer Financial Protection Bureau is pushing to reduce the overdraft fees Americans are charged at banks and credit unions when they don’t have enough money in their accounts to cover spending, which could save customers $3.5 billion a year, the latest in a string of crackdowns on fees by the Biden Administration. Key Facts Under a new proposed rule, large financial institutions could either charge a flat fee for overdraft payments that aligns with the service’s cost, or provide the same disclosures and protections for overdraft services that are required for credit cards and other loans. If banks choose...

A couple in Pennsylvania is facing theft charges and over $100,000 in overdraft fees after allegedly using money that was accidentally deposited into their bank account, WITN reports. State police said the couple living at a home on Cypress Street in Montoursville got themselves into hot water after spending money that wasn't theirs. Investigators said Robert and Tiffany Williams had $120,000 deposited into their account at BB&T May 31 through a mistake by a teller. But instead of contacting the bank about the deposit, the couple allegedly spent most of the money in just over two weeks from June 3...

A British family of five has been forced into poverty after their bank froze all their accounts when an error left them $2.1 million overdrawn. The Livermore family have been forced to go to food banks and live off handouts from friends and relatives for nearly a month after a blunder by Barclays left them $700,000 overdrawn on each of their three accounts. Paul and his wife, Kayleigh, both 31, have struggled to provide for their three children, ages 11, 8 and 7, for almost a month after the mistake on Easter Monday, which is a national holiday in the...

The state Department of Revenue deposited 2010 tax refunds into Georgians' accounts in the last few days then withdrew them, leaving people with strings of bank charges for overdrawn accounts. Related Tax-free holiday no longer a priority .More Atlanta area news » Immigration attorney accused of fraud Firefighter dies in crash Public concerns spur Alpharetta to reconsider MetLife project DeKalb wants to create special police tax .Robert Freeman of Valdosta said he noticed his 2010 refund was in his account Sunday, and then it was missing today. "It happened to me and my brother-in-law," Freeman said. "Unfortunately, he spent his...

"In a decision handed down late Tuesday, U.S. District Judge William Alsup accused Wells Fargo of "profiteering" by changing its policies to process checks, debit card transactions and bill payments from the highest dollar amount to the lowest, rather than in the order the transactions took place. That helped drain customer bank accounts faster and drive up overdraft fees, a policy Alsup referred to as "gouging and profiteering.""

(03-09) 21:21 PST NEW YORK, (AP) -- Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It's a step that may become a common move ahead of new regulations limiting overdraft fees. Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/03/09/financial/f190007S63.DTL&tsp=1#ixzz0hkprqVVM

Banks make $38bn from overdraft fees By Saskia Scholtes and Francesco Guerrera in New York Published: August 9 2009 22:52 | Last updated: August 9 2009 22:52 US banks stand to collect a record $38.5bn in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s, according to research. The fees are nearly double those reported in 2000. The finding is likely to increase public hostility towards the financial sector, which has been under political pressure to ease the burden on consumers by increasing...

If you were hit with an overdraft fee from Bank of America (NYSE:BAC) (or one of the banks it acquired) between 2000 and 2007, you may be in for a little cash. Bank of America recently settled a class-action lawsuit that alleged it (and by extension, Fleet Bank, LaSalle Bank and U.S. Trust Company, which it acquired during that period) changed the posting order of transactions and embarked on other activities in order to increase the revenue it received from non-sufficient funds fees, overdraft fees and similar charges. The lawsuit, which was settled for $35 million, also alleged that the...