Image provided by: University of Oregon Libraries; Eugene, OR
About The skanner. (Portland, Or.) 1975-2014 | View Entire Issue (March 23, 2011)
Business/Bids Advertising deadlines 12:00 Noon Monday Hours: Monday - Friday 8:30 a.m. - 5:30 p.m. To place your ad, email advertising@theskanner.com Debit Card Overdraft Abuse by Big Bankers Continues Many still benefit from account manipulation and high fees By charlene crowell nnPa columnist S ome of the biggest banks in the nation still collect excessive fees from American families by encourag- ing overdrafts and manipulating customer accounts. Comments in the media suggesting Americans overwhelmingly choose expensive debit card overdraft coverage overlooks the mil- lion of customers at banks that do not offer the high-cost option and ignore the heavy-handed marketing that banks have used to persuade customers to “opt in” to a costly serv- ice. Banks are now required to seek customer permission before approving debit card transactions that would result in an overdraft and its accompanying average $34 fee. The Center for Responsible Lending’s research shows that overdrafts strip $24 billion from checking account holders each year. While Bank of America and Citibank, two of the nation’s largest banks in terms of deposits, do not charge debit card overdraft fees – saving their customers millions in fees – other banks have launched opt-in marketing campaigns described in an issue brief by the Center for Responsible Lending. It shares how some lenders are targeting cus- tomers at greatest risk for frequent overdrafts. The brief is available online. In other instances, some lenders are also continuing the Banks are now required to seek customer permission before approving debit card transactions that would result in an overdraft and its average $34 fee practice of re-ordering check transactions to further boost overdraft fees. Five civil rights groups including the NAACP, the National Council of LaRaza, the National Coalition for Asian Pacific-American Community Development, the National Urban League, and Leadership Conference on Civil and Human Rights have jointly asked JP Morgan Chase and Wells Fargo to discontinue their abu- sive overdraft practices. These practices are a financial boon to banks and credit unions but a budget-buster for consumers who keep slim balances in their accounts. They are the most painful for low-income, single and minority heads of household living paycheck-to-paycheck. With little or no financial cushion in a checking account, multiple, and high-cost overdraft fees add up quickly. When a new deposit is made, those monies are reduced immediately by the banker, taking repayment for the amount of this short-term loan and all of the related fees. Some banks artificially inflate these fees by playing with the order of transactions when they daily balance the books at the close of business. A video that further explains how banks are gouging customers their practices is also avail- able on the CRL web. Both items can be accessed from: www.responsiblelend- ing.org. Consumers should opt out of overdraft “protection” pro- grams and allow their debit card transactions to be declined at no cost when available funds cannot cover a transaction. Other consumer options can link customers’ checking and savings account or establish a low-cost line of credit for overdraft coverage. From CRL’s perspective, federal bank regulators should take action to ensure that all consumers are protected from overdraft abuse. Charlene Crowell is the Center for responsible lending’s communications manager for state policy and outreach. We honor the many accomplishments of African Americans. SUB BIDS / SUPPLIER QUOTES REQUESTED SR 520 Evergreen Point Floating Bridge and Landings Project DESIGN BUILD PROJECT Washington Dept of Transportation Disadvantaged Business Enterprise Subcontractors & Suppliers are STRONGLY encouraged to participate General Project Information can be found on WSDOT’s Website: www.wsdot.wa.gov/biz/contaa/DESIGNBUILD CONTRACTS Quantities & project information will be available approximately May 4, 2011, an d Quotes are due May 27, 2011 OUTREACH MEETING Please join us at a project Outreach Meeting On Tuesday, March 29, 2011 5:00-7:00 p.m. At Pan Pacific Hotel, 2125 Terry Ave. Seattle, WA 98121 To register for the Outreach Meeting Visit http://sbeinc.com/skanska.cfm Sonyja Blanson – 800-800-8534 vvv@sbeinc.com 3-23-11 Page 10 The Portland Skanner march 23, 2011
