Banks Draw Fire from CBS for Charging Fees

Apparently, “CBS Evening News” thinks it shouldn’t be your responsibility to remember to balance your checkbook. Anthony Mason’s July 11 report bashed banks for *GASP* profiting from overdraft fees.

Banks are cashing in on overdrafts, raking in more than $17 billion in fees last year, according to the Center for Responsible Lending” said Mason.

The segment, called "Hidden Charges," did not include comment from the banking industry and it also ignored the risk taken by banks by offering overdraft protection service – which can be a benefit to consumers. Bouncing a check is costly too from what I've heard. 

In a July 11, U.S. News & World Report article, the banking industry said that managing one’s personal finances is the responsibility of the customer.

“Overdraft protection is an important service for our customers, and we believe customers should understand the responsibilities to track deposits and withdrawals, and any fees associated with overdrafts and options to avoid them,” Nessa Feddis, of the American Banking Association testified recently at a House hearing, according to the U.S. News & World Report.

Instead of focusing on personal responsibility, Mason supplied comments from upset customers and the Center for Responsible Lending, an advocacy group that is pushing legislation introduced by liberals Rep. Carolyn Maloney (D-N.Y.) and Rep. Barney Frank (D-Mass.). The legislation would make overdraft fees subject to regulation under the Truth-in-Lending Act by calling the fees, loans.

Julia A. Seymour
Julia A. Seymour
Julia A. Seymour is the Assistant Managing Editor for the MRC's Business and Media Institute.