Richard Cordray is Fast Becoming The Most Hated Man In Banking
by Adam Jameson on February 22, 2012
Richard Cordray, the newly installed head of the Consumer Financial Productions Bureau (CFPB), launched an inquiry into bank overdraft fees.
The consumer watchdog previously announced (as reported in CompliancEX) investigations into collection companies, credit report entities and payday lenders and is now setting its sites on fees charged by banks when consumers overdraw their accounts.
In addition to the fees, Banks provide overdraft “protection” when consumers overdraw their accounts, covering the transaction and charging fees as large as $35 for each overdraft.
The Consumer Financial Protection Bureau said it would like to create a “penalty fee box” disclosure on a consumer’s checking account statement that would highlight the amount overdrawn and total overdraft fees charged.
“…overdraft practices have the capacity to inflict serious economic harm on the people who can least afford it,” said CFPB Director Richard Cordray.
The CFPB also said it is looking into reports that consumers are receiving misleading marketing materials about overdrafts.
There is no word if Mr. Cordray is looking into the practice of banks actually having the nerve to charge interest on loans and credit cards.
Rumor has it that Cordray is also developing the “don’t worry, that’s ok” rule which will permit people to stop making payments on loans, credit cards and mortgages if they rather use the money for motorbikes, big screen televisions and iPods – the basic essentials.
3 comments
I believe the fees need to be disclosed, but in all seriousness, no one should overdraw their account. My wife and I have not had an issue for at least twenty years, because we know how to subtract. Banks have tried to charge us a few times in the past and each time it was their error, not ours, hence no fee. Keep all withdrawal receipts and copies of cancelled checks and there should be no problem. If you can’t keep track of your money, it is your problem, not the bank’s.
by Daniel on February 22, 2012 at 5:08 pm. #
A free checking account is a tax on the poor.
by Joe Collins on February 22, 2012 at 5:58 pm. #
Your headline says
Richard Cordray is Fast Becoming The Most Hated Man In Banking
—- but not only doesn’t offer proof, the alleged hatred is not even stated, much less demonstrated, in the article. Terrible journalism.
by John P MacKenzie on February 27, 2012 at 5:19 pm. #