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Overdraft Fee Assault: Debacle or Dream Come True?

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Celent have reviewed this profile and believe it to be accurate.
10 March 2010

Comments

  • As usual, you are spot on in your analysis, Bob. Bank response to the Reg. E revision and OD opt-in deadlines will be a litmus test in the eyes of many consumers. That is, "Is my bank a white hat or one who will, by hook or crook, do anything to get my opt in and continue to exact exorbitant OD fees?"

    According to Moeb$, 11.4% of banks and credit unions have made changes in how they handle or price overdrafts since Regulation E revisions were announced by the Fed in November 2009, and among these, 18.4% decreased their OD pricing. This minority of banks and credit unions will stand out as white hats and be rewarded. As Moeb$ asserts, “...decreasing the price will actually stimulate volume and produce more net revenue,” while increasing the price (as the majority of banks and credit unions have done) "...will actually reduce consent of those opting in to debit cards for overdrafts and will decrease net revenue of depositories.”

    Thanks for the post!

  • [...] advocates.Bob Meara, a senior analyst with Celent, a consulting firm for banks, warned on his blog that this new regulation – part of the federal government’s recent financial reform package [...]