Watch Your Back -- Banks Still at It While Senate Banking Committee Considers Options

In April of last year I wrote a blog entitled "Watch Your Back" here at Huffington Post. I contacted Senator Jack Reed who is a member of the Senate Committee on Banking, Housing And Urban Affairs. In response, I received the e-mail I've put at the end of this blog.

In my family's case, Citizen's Bank -- RBS (Royal Bank of Scotland), which refers to itself as "not your typical bank," dragged their feet in my teenaged son's efforts to recover money they took from him while not informing him of an overdraft and what he could do to avoid repeated penalties in anything close to a timely manner. We have retained the account with little money in it while attempting to resolve the problem. But, after I'd written to their relevant president and we'd received a letter from senior management urging my son to call, he has yet to receive a return telephone call from them after leaving messages.

One more thing. They informed my son and I at the branch he uses that had he used a Citizen's Bank ATM, he would have been warned of the overdraft. That turns out to be untrue. They do not protect their customers by informing them at the ATM that they are about to draw beyond the amount they have in their accounts.

I contacted Senator Reed's office today. The Fair Overdraft Coverage Act is still in committee and there is not indication, I was told, of when it will escape from there. It is trapped. And so are many bank customers. Meanwhile big banks are surreptitiously robbing from people.

So, let me add my voice to Arianna's call to move your money. Leave the large banks that are not responsive to you as a customer and do what you can to urge your senators to get the Fair Overdraft Coverage Act passed and whatever else it takes to protect people from unethical banking practices.

From: [e-mail]
Date: Tue, 3 Nov 2009 12:18:19 -0500
To:
Subject: Response From Senator Jack Reed

Dear Dr. Reardon:
Thank you for contacting me regarding overdraft fees. I appreciate hearing from you.
I share your frustrations with excessive charges for overdrawn checks and other bank fees.
Financial institutions are generally permitted to charge fees for overdrawn checks. More information on this policy is available on the Office of the Comptroller of the Currency's website, at http://www.helpwithmybank.gov/faqs/, and on the Office of Thrift Supervision's website, at http://www.ots.treas.gov/?p=ConsumerBrochures.

You may be interested to know that I am an original cosponsor of S. 1799, the FAIR Overdraft Coverage Act, which was introduced on October 19, 2009. Among other provisions, this legislation would prohibit banks from initiating an overdraft service on an account without the prior consent of the account holder. It would also require banks to warn customers at electronic terminals, such as an ATM, that a requested transaction would trigger an overdraft protection fee and provide customers the opportunity to cancel the transaction. S. 1799 was referred to the Senate Committee on Banking, Housing and Urban Affairs, of which I am a member.

I am committed to reforming unfair overdraft protection services, while preserving consumer access to credit and strengthening consumer protections, and I will keep your views in mind as the Banking Committee considers this legislation.

Again, thank you for contacting me, and do not hesitate to write, call, or visit my website, www.reed.senate.gov,in the future for information regarding this or any other matter.

Sincerely,
Jack Reed
United States Senator
http://reed.senate.gov
If you'd like to send another message, please do so at http://reed.senate.gov/contact/ . Thank you.
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