Managing Money :: New limits on overdraft fees take effect

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Released: August 17, 2010

New limits on overdraft fees take effect

Source: Ylan Q. Mui and Sonja Ryst, Washington Post (Free Registration)

New regulations took effect this week banning banks from allowing consumers to automatically overdraft their checking accounts - and charging those customers high fees in the process - a practice that government officials say unfairly penalizes the poor.

Federal regulators are considering making the rules even tougher. Last week they proposed new restrictions on smaller banks that have been pushing into the overdraft business as big banks have scaled back.

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