Overdraft Holiday Needed Created by m.moebs on 10/31/2022 11:18:01 AM
As Halloween is upon us scary things came out of Washington DC this past week.
The CFPB and the White House labeled overdrafts “surprise, junk fees” on deposit accounts.
The article below outlines solutions to make more revenue with what Washington D.C. is suggesting.
Oh, and let’s put the consumer first by lowering fees.
Your comments: positive, negative, and exceptional are wanted.
Confidence in the Payment System Needs to Be Restored
"Labeling overdrafts as junk fees and surprise fees does not restore confidence in the payment system."
Michael Moebs, Economist & CEO of Moebs Services (MS) a Financial Service Research Firm.
Lake Forest IL (October 30, 2022) In 1933 after a month-long run on all American banks starting with the collapse of
a New York bank a severe loss of confidence faced all depositors. So, President Roosevelt proclaimed a Bank Holiday to
curb the panic. On March 6,1933, the banking system was shut down reopening on March 13. Depositors stood in line
to return their hoarded cash. The Bank Holiday worked by restoring faith in the banking payment system.
Overdrafts need a bank holiday to correct government misdirected guidance of the marketplace.
Otherwise, depositories could stop offering the OD service and this would happen: READ FULL ARTICLE