Chris Dodd (D-CT) Seriously?

Most of you know that I rarely post my political views on my blog even though I have pretty strong ones, but with this one, I just can't help it. I'm livid about this one. Here is the article from Chris Dodd's website.

******************************************************************************

October 19, 2009
At a press conference at Stamford Government Center today, Senate Banking Committee Chairman Chris Dodd (D-CT) unveiled The Fairness and Accountability in Receiving (FAIR) Overdraft Coverage Act, a bill to protect Americans from excessive checking account overdraft fees. Dodd was joined at the event by Attorney Ellery Plotkin, a consumer advocate, and Mario Livieri, a resident of Branford who was unfairly hit with overdraft fees earlier this year.

“At a time when many can afford it least, Connecticut consumers like Mario are being hit with hundreds of dollars in penalties for overdrawing on their account by just a few dollars. Banks should not be trying to bolster their profits at the expense of their customers,” said Dodd. “My legislation gives Connecticut consumers control over their bank accounts – giving them the chance to choose whether they want overdraft protection, establishing strict limits on these fees, and shining more light on these practices.”

So-called “overdraft protection programs” enable customers to overdraw their accounts, without their knowledge, they make debit card purchases, electronic transfers, ATM withdrawals or use checks. Account holders are often enrolled in the programs without their consent and many banks will slap customers with fees of upwards of $30 for this “courtesy” even if their account is only overdrawn by a few cents.
*********************************************************************************
Etc. etc. You can read the full article if you follow the above link to Dodd's website.




Here's a thought, Mr. Dodd -

I don't think people need "government protection" from these "ridiculous" overdraft fees us evil banks are charging. Here's a novel idea... Maybe consumers could just balance their check books and not spend money they don't have. That would be the quickest and easiest way to ensure they aren't hit with these huge fees. Problem solved, no need for legislation. Taken directly from the article..."so called overdraft protection programs enable customers to overdraw accounts without their knowledge" WITHOUT THEIR KNOWLEDGE? Are you kidding me? Do they not have a check register and a calculator? Give me a break! Where does taking personal responsibility for one's actions fall into this bill?

Secondly, if this legislation passes and banks are only allowed to pay overdrafts only six times per year, what happens when consumer habits don't change? Let me just inform you. Our bank currently charges $25 for an overdraft account per item. If we instead (after the alloted 6 per year) sent those items back to the businesses they were written to, guess what their fee is for a returned item. At Wal-Mart and most convenience stores, it's $35.00! Shall we save your constituents from evil Wal-Mart, Family Dollar, Sally's Salon and Bert's Barbeque Pit as well?

This proposed legislation helps no one, not banks, and definitely not consumers. What are you thinking?

Granted, I'm a banker and probably more than a little biased on the topic, but seriously, can someone tell me why this is a good idea? Really, what am I missing here?