Tag: Overdraft Protection during Economic

An attorney based in Washington, D.C., Jeffrey Douglas Kaliel has established a record of successfully bringing class action suits against financial institutions that engage in unfair business practices. Jeffrey Douglas Kaliel has also brought about many settlements in favor of the plaintiffs, such as $66 million in benefits agreed to by Bank of America.

Excessive or unfair overdraft fees have been a source of irritation for many consumers, but in the current economic climate, overdraft fees can further stress finances for those who have been out of work for some time. The situation is so dire that two lawmakers have made it a priority to draft legislation that would encourage banks to waive overdraft fees during these trying economic times.

In April, Senators Cory Brown and Sherrod Brown put together a bill that would help Americans avoid being impacted by overdraft fees. At the time, federal regulators had already asked banks to overlook both NSF and overdraft fees, but the two senators want the banks to waive these fees until the shutdown (due to the pandemic) is over and most Americans have returned to work.

The two also appealed to leading banks in the nation to extend grace to many who are meeting mortgage and other payment obligations. JPMorgan Chase, US Bank, Bank of America, and others were sent letters that asked them to waive fees for account holders who are already in a fragile financial state.

As of late September, Congress has not adopted the proposal, but others have been considered. One suggestion is to borrow from the UK model, which provides Britons up to 500 pounds in overdraft assistance for 90 days – at no cost. Another suggestion is to reduce overdraft fees from the typical $35 to $20 and no longer assess multiple fees.

However, institutions such as Wells Fargo and JP Morgan Chase have already established policies to assist customers who might be having financial difficulties. In September, Wells Fargo’s Clear Access Banking Accounts included both no-overdraft and limited overdraft options.