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senate Bill S. 1595

Should Banks’ Ability to Charge Overdraft Fees Be Limited?

Argument in favor

Overdraft fees are disproportionately shouldered by the consumers who can least afford them: workers living paycheck-to-paycheck. While these fees boost banks’ bottom lines, they hurt financially vulnerable consumers, make it harder for them to make ends meet, and can even push such customers into the unbanked population.

Brian's Opinion
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09/07/2019
While this seems like a good way for banks to earn income, it disproportionately profits off the poor, keeping some people from being able to use the banking system to gain financial independence. Banks should use a different structure that does not penalize the poor or those with unstable incomes in order to help build stronger communities.
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jimK's Opinion
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09/07/2019
YES! Reasonable, non-compounding charges are certainly warranted to cover costs associated with rectifying accounts. These charges should not be allowed to inflict undue punishment. ... ... Usurious late charges are levied upon people least able to defend themselves or successfully challenge the charges- making them easy targets and an unchallenged revenue source. Those who can challenge unfair practices are more able to simply switch banks. This is kind of an ‘indentured servitude’ to the ‘company store’ which prevents less fortunate from ever getting ahead and is detrimental to both them and to our society.
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Mel's Opinion
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09/07/2019
This directly affects those who are living on the edge of their accounts. Profiting off of those who are struggling isn’t admirable.
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Argument opposed

Overdraft fees are an important revenue source for banks. This legislation goes a step too far on this issue and will put significant financial pressure on all banks, potentially leading them to stop offering overdrafts or end relationships with poorer customers once they can’t make revenue off charging overdraft fees.

Libertarian's Opinion
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09/07/2019
Let the consumers regulate this by choosing the banks which treat them best. No laws are required here.
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SneakyPete's Opinion
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09/07/2019
Overdraft fees are an important revenue source for banks. This legislation goes a step too far on this issue and will put significant financial pressure on all banks, potentially leading them to stop offering overdrafts or end relationships with poorer customers once they can’t make revenue off charging overdraft fees. SneakyPete.......... 9.7.19..........
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Ronald's Opinion
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09/07/2019
Government interference will make the problem worse. Market forces will fix the problem.
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    While this seems like a good way for banks to earn income, it disproportionately profits off the poor, keeping some people from being able to use the banking system to gain financial independence. Banks should use a different structure that does not penalize the poor or those with unstable incomes in order to help build stronger communities.
    Like (95)
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    Let the consumers regulate this by choosing the banks which treat them best. No laws are required here.
    Like (40)
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    YES! Reasonable, non-compounding charges are certainly warranted to cover costs associated with rectifying accounts. These charges should not be allowed to inflict undue punishment. ... ... Usurious late charges are levied upon people least able to defend themselves or successfully challenge the charges- making them easy targets and an unchallenged revenue source. Those who can challenge unfair practices are more able to simply switch banks. This is kind of an ‘indentured servitude’ to the ‘company store’ which prevents less fortunate from ever getting ahead and is detrimental to both them and to our society.
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    This directly affects those who are living on the edge of their accounts. Profiting off of those who are struggling isn’t admirable.
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    I used to work in a bank. One of the managers, who’s father was a bank executive stated how “lucrative” the overdraft fees were for the bank. People have budgets. If a person is short 50 cents, 1 dollar or some other minimal amount and is charge $35.00, that is THIEVERY. Then the account gets charged over and over with overdrafts fees to the point the account owner is unable to repay. They demand you pay in some timeframe, which is usually before a payday, when people are broke. If you can’t pay, they close account, put you in check systems- for a problem they created! I once had a bank charge me $250.00+ for overdrafts because the account balance was low and automatic drafts kept hitting the account. I asked both sides to stop the transaction and neither would. The banks has millions and families have so much less. Stop making it harder for families to survive with the overdraft fee practice. Limit it to 1 fee per 30 days.
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    Thanks to the Republicans, banks are already making plenty of money.
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    Yes. Regulations on banks - including limiting overdraft fees - are essential.
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    We bailed their asses out, but they have no problem screwing us over. Sounds very Republican. All big business, screw the average citizen.
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    Banks do everything but turn you upside down to shake the change out of your pockets to scrape every last cent from customers. It is obscene and should be kept in "check".
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    Overdraft charges should deter overdrafts, but without a set limit, banks have no restrictions and will raise their charges out of all proportion. A study by Pew Research shows most people with overdrafts are using them as temporary payday loans that cost interest of 1000%. http://www.pewtrusts.org/research-and-analysis/issue-briefs/2017/12/overdraft-does-not-meet-the-needs-of-most-consumers Allow banks to fully control overdraft levels does not do anything to decrease the practice. What we need to do is make the economy work for EVERYONE so people don’t find themselves short at times and have to use payday loans. Not everyone understands what money management services are available to them, or how to access those services. The banks have no real incentive to assist them because they are winning at this overdraft game. We need free, comprehensive financial education in schools and communities that everyone can access, and promotion on a national level of the importance of financial responsibility to encourage use of those resources.
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    Yes it should, banks do not need another reason to rip off their customers consistently.
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    Cory Booker must be bouncing checks.
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    Fees should cover the true expense of the oversight. $40 fee for $10.00 check seems like gouging
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    How about the banks give us an interest rate, on our savings, of 10 to 15%, like we used to get in the 60’s-80’s? Our savings could actually grow, in those days. Now, they still loan our savings money out, while earning 10 to 25% on credit card interest, but we’re lucky if we get a .01% on them using our savings to make their loans. Sounds criminal to me but, hey, who cares about us little people. Additionally, the wealthy are given special savings accounts and rates. Too bad we can’t all be wealthy, eh? With this current thief in charge, we never will be either!
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    Overdraft fees are an important revenue source for banks. This legislation goes a step too far on this issue and will put significant financial pressure on all banks, potentially leading them to stop offering overdrafts or end relationships with poorer customers once they can’t make revenue off charging overdraft fees. SneakyPete.......... 9.7.19..........
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    Banks already takes more than their fair share of people’s wages. No more should be given to the profiteers!
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    They don’t have people working for them any more, computers do all the work so the rich get richer and the poor get poorer. If the banks kept other costs down with these fees then maybe, but they don’t. $$$ is all they care about.
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    To add such high overdraft is stupid. If the people had the money they would pay their bills and not overcharge. The retired person has to decide medicine food? You greedy bastards want to rob these people for what for who who gets that money You are morally bankrupt
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    People end up going broke just having a bank when they’ve gone over a few dollars because they just need to get by until payday.
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    Yes. Banks make money hand over fist, Even very small private banks pay their CEOs and CFOs in the six figures. They are always looking for a way to needle more money out of the customers. It’s a total rip off.
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