An official website of the United States Government

Live from New York City!

By

Our live events on checking have ended. You can watch an archived recording of the morning roundtable below, or read Director Richard Cordray’s remarks. And make sure to check out the work on overdrafts that we announced:

  • We’re researching how overdrafts affect you. We launched an inquiry through a data request that is being sent to a number of banks and a Notice and Request for Information to gain insight into overdraft practices.
  • We want you to understand what actions you can take now to protect yourself from overdraft fees. Do you know your overdraft status? Read our Consumer Advisory that explains how you can learn whether or not you have opted in to debit overdraft fees on ATM and point-of-sale transactions.
  • We’re working to make it easier for you to understand the costs and risks of overdraft programs. Our model overdraft “penalty fee box” is a thought-starter for a disclosure that would appear on your checking account statement and online banking landing page. It would highlight the amount overdrawn and total overdraft fees charged, so you so can clearly see how much overdrafts are costing you. Tell us what you think.

Director Cordray’s remarks and a roundtable with industry representatives and consumer advocates:

The content on this page will change throughout the day to reflect the current or upcoming video.

  • Gbeckham

    It’s insidious and different from bank to bank. Some banks have immediate credit for cash. Will others have immediate availability up to a certain dollar amount, like $100 but if a check or charge comes through it will bounce because the funds are not available for purchases until the next business day. However, the banks often process charges at midnight of the same day while holding your deposit until the next day even if it’s cash. I’ve had experience with both types of banks. In today’s electronic environment, all of your cash should be available up to the processing hour. So if they process debits at midnight your deposits should be credited and available for purchases up to midnight. Some banks do this, some do not. Those who do not also will charge you an overdraft fee the second the charge hits your account even though it’s still in a pending status, so if you go in and make the deposit and see it’s overdrawn your too late, you will be charged the $35-37 fee because it wasn’t available at the time the charge came through.  Some banks give you up to the processing time or allow you to cover it along as it’s in pending status. As I’ve said, I’ve experienced both. It’s extremely inconsistent and it shouldn’t be. If you can process my charges instantly you should be able to process my deposits the same way. If the charge is pending you should be able to cover it up to the processing time when it actually posts. This should be standardized. Would go a long way with helping people management their bank accounts. That along with charging fees for their fees. If you have a bank fee and do not allow for it, they will charge a overdraft fee and you have to call to get it refunded,  some banks won’t do it, again I’ve seen this both ways as well. I don’t think they should be able to do this either. Along with some kind of range for overdraft fees, based on the size of the overdraft would be helpful. Then banks also charge the same fee per transaction every 3 to 5 days. If you get paid every 2 weeks, you are so messed up. That shouldn’t be allowed. You could owe the bank $500 dollars by the time you get paid. It’s crazy. Some banks only charge it once others keep building it up every 3 to 5 days it depends on their policy no set structure or rule. Maybe this can be standardized as well.

The CFPB blog aims to facilitate conversations about our work. We want your comments to drive this conversation. Please be courteous, constructive, and on-topic. To help make the conversation productive, we encourage you to read our comment policy before posting. Comments on any post remain open for seven days from the date it was posted.