Credit unions and banks would have to gain a member's or customer's permission before enrolling them in an overdraft protection program and could only charge fees once a month or six times per year in legislation introduced today by Senate Banking Committee Chairman Christopher Dodd (D-Conn.)
Other provisions include: Fees would have to be proportional to the processing costs, customers would have to be notified when they overdraw their account and a customer must be warned if a transaction will cause them to overdraw their account.
It would ban credit unions and banks from shifting the order of transactions to increase the frequency of overdrafts.
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