Follow us:

Northwest Voices

Seattle Times letters to the editor

December 23, 2008 at 4:00 PM

Fed’s credit card regulations

Know the facts

It is unfortunate that the Federal Reserve’s ruling that increased regulations on credit-card practices ignored the problems with bank overdraft and insufficient-funds fees [“New credit-card rules faulted,” Business & Technology, Dec. 19]. A recent FDIC [Federal Deposit Insurance Corporation] study showed that the most vulnerable Americans — youth and those with lower incomes — are disproportionately affected by these hidden fees. And a survey done by our organization this month showed that half of consumers admitted to having overdrawn their account.

Somehow overdrawing checking accounts became a common practice, particularly among young Americans. The public and regulators need to understand that the interest and fees on these overdrafts or “bounced loans” are far more expensive than any other conceivable form of short-term borrowing.

— James Bowers, managing director for the Center for Economic and Entrepreneurial Literacy, Washington, D.C.

Comments | More in Economy

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►