The banking industry is sending out mixed signals at the moment.  Just last month, several large banks including Bank of America and Chase were trying to convince people to stay with overdraft “protection” ahead of the rule change that goes into affect this summer that will make it so consumers have to opt in rather than having to ask to opt out of these evil programs.

And yes, I do mean evil.  I think Bank of America’s move, yesterday, March 9, 2010, proves that they’re admitting that this program was evil as well: in the biggest single move since I started “Overdrawn!” almost four years ago, B of A said that it is ending overdraft fees on debit cards!

Now there are a gang of consumer advocates nationwide who are holding their breath to see what’s next on two big questions: First, how will the banks replace this income?  I’m hoping that they go back to the old method of charging everyone $5 or so to have a checking account - this is the most democratic way of assuring that everyone from low income consumers to wealthier folks all pay the same amount.

Second, will the other big banks follow suit?  I don’t see how other big players like Chase and Wells Fargo can ignore this, so it seems likely that checking accounts are in for some major re-working in the next few months.  Again, I just hope that paying for them ends up being more equitably distributed between all consumers, rather than having the bulk of them being paid for by lower-income account holders.

Okay, time to connect some dots.  I was inspired by an article on the Huffington Post about a proposal from State Rep. Brian Egolf of New Mexico.  He has introduced a bill to move the State of New Mexico’s money from Bank of America to community banks and credit unions throughout the state.
Naturally I thought, [...]

Ariana Huffington is working on starting a movement to get people to switch from their big banks to community banks and credit unions.  Great idea (and one that a bunch of the consumer advocates in my film are on the side of)!
A woman on Facebook , Carol Merrill, said it best: when you switch to [...]

This is a red-letter day, no question about it.  The Fed gave us opt-in, which means that new and existing account holders have to sign up for overdraft protection rather than be automatically enrolled when they open an account.  But the fight is far from over.  As Eric Halperin of the Center For Responsidle Lending, [...]

On November 19, which happens to be my birthday, “Overdrawn!” will screen on Capitol Hill.  Here’s an electronic version of the press release, with links:

11/6/09 FOR IMMEDIATE RELEASE
Contact: Karney Hatch, karneyhatch@gmail. com
“Overdrawn!” Screening on Capitol Hill
Ralph Nader to head panel of experts at Q & A
WASHINGTON, D.C. - - “Overdrawn!”, a documentary on predatory lending [...]

A woman pissed off about Bank of America jacking her interest rate up to almost 30% has called on others in her situation to join her in a debtor’s revolt.  Even a year ago I’m not sure I could have supported such extreme action - I’m in favor of legal change.  Now that the banks [...]

Americans For Fairness in Lending is a group working for financial justice across the lending landscape, from Tax Refund Anticipation Loans to mortgages (and of course overdraft fees).  I encourage everyone to sign up and maybe send a  few pesos their way.  Once you’ve registered with them, go ahead and write to your congressperson to [...]

Michael Moore’s latest, “Capitalism: A Love Story”, is his most ambitious film to date and establishes him firmly as our nation’s class clown. It demonstrates once again why his films play better at the multiplex than they do in academia: they’re entertainment, not serious critiques. It’s not that he doesn’t do his homework, it’s [...]

Felix Salmon, a Reuters blogger, linked to the short version of the film that aired on Current TV.
Check it out here.

This is big-ish news.  B of A and Chase are moving in the right direction on their overdraft fee policies, though they still have a loooong way to go.  Here’s a link to the main article in the New York Times. And here are some thoughts on specific bits of the story.
The moves come as [...]