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Two Banks Improve Overdraft Policies

September 24, 2009

This week, customers of Bank of America and Chase were delighted to hear about the banks’ new, more lenient overdraft policies.  After recent public outcry about bank fees, both B of A and Chase chose to reform their approaches to dealing with overdraft charges.  This article from CNN has more specific information about the new policies, and the New York Times also has coverage of the change.

While this is good news for customers of these banks, voluntary changes like these come with no guarantee.  For proof, look no further than Citigroup, which made a fuss out of abandoning “universal default” only to reinstate the practice less than a year later, once attention had shifted away from the issue.

The only sure way to protect consumers in the long run?  Create a strong and effective Consumer Financial Protection Agency. If banks are already voluntarily meeting high standards, it will make the transition that much easier.

(Photo: helloturkeytoe)
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