Personal Liberty Digest™ will be upgraded this weekend to reflect a dynamic new look and mobile-friendly viewing to enhance your experience! Plus, we'll be providing even more of the compelling content you've come to expect, delivered in a whole new way!

  Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty

Critics Say Fed’s Overdraft Rules Are ‘Not Enough’

November 23, 2009 by  

Critics say Fed's overdraft rules are 'not enough'Recently, the Federal Reserve said that beginning next July financial institutions will be prohibited from charging overdraft fees without their clients’ consent.

The new regulations mean that banks will only be allowed to levy fees for overdrafts on ATM and debit card transactions if account holders sign up for the plan.

According to Fed Chairman Ben Bernanke the regulations will protect consumers so that "both new and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service."

While the move was welcomed by Consumers Union, its representative stated that the new rules do not go far enough and said proposals currently considered in Congress would provide stronger protections.

Legislation introduced by House Financial Services Committee chairman Barney Frank of Massachusetts and Senate Banking Committee chairman Christopher Dodd of Connecticut, both Democrats, also includes a ban on automatic overdraft protection of checks and recurring charges which the Fed failed to ban.

Dodd has furthermore introduced legislation to strip the Fed of authority for regulating banks and give Congress a greater voice in naming the central bank officials who set interest rates, according to Bloomberg.


Special To Personal Liberty

You Sound Off! is written by our readers and appears the last Wednesday of each month. If you would like to submit an article or letter to the editor for consideration for You Sound Off!, send it to by the Friday before the last Wednesday of the month. To be considered, a submission should be 750 words or less and must include the writer's name, address and a telephone number. Only the writer's name will be published. Anonymous submissions will not be considered.

Facebook Conversations

Join the Discussion:
View Comments to “Critics Say Fed’s Overdraft Rules Are ‘Not Enough’”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at


Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.