Two years after regulators gave Americans more power to manage overdrafts of their checking accounts, the Consumer Financial Protection Bureau is reviewing bank practices to determine if the crackdown went far enough.
The agency, which will decide by the end of the year whether to write new rules, is scrutinizing nine banks including JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC)and Bank of America Corp., said four people briefed on the examination.
These jackals stole made $31.6 billion in fines for this “service” last year. That’s a lot of money. To put this in GDP perspectives it’s 0.2% of a point of GDP that is effectively stolen from consumers every year.
And yes, folks, let’s call it what it is: Legal theft.
Look at the “marketing” that Chase does:
Chase, the retail arm of JPMorgan, warns customers who don’t opt for the overdraft protection that they will “need to make sufficient deposits so that everyday debit card purchases will be approved,” according to a letter from the bank posted on the website mainstreet.com in February.
As opposed to both making sufficient deposits to pay $35 for a $3 latte at Starbucks without prior warning?
This sort of crap is ridiculous and that type of “marketing” is intentionally misleading. You still need to make sufficient deposits, and in fact if you have the so-called “overdraft protection” you will need to make larger ones if you incur overdrafts!
That, of course, isn’t disclosed in that sort of fashion.
This isn’t “banking” it’s legalized looting compliments of Congress and The Fed.