The CFBP is investigating a number of areas when it comes to overdraft fees.
The card can't incur overdraft fees, says Laura Kelly, a senior vice president at American Express.
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Competitors JPMorgan Chase and Wells Fargo also face similar lawsuits concerning overdraft fees.
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The agency will look into why low income and young consumers are disproportionately burdened by overdraft fees.
The bill would also ban the practice of posting checking account transactions in a way that maximizes overdraft fees.
The Card Act is another revenue killer for banks which, among other things, keeps them from charging overdraft fees.
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Consumers have blasted banks for imposing multiple overdraft fees when customers exceed balances by as little as 50 cents.
Overdraft fees are charged by banks when customers try to spend more money than they have in their checking account.
They have some of the highest overdraft fees, says Michael Calhoun of the Centre for Responsible Lending, a consumer-advocacy group.
Bluebird, first available through a pilot program last year, will have no minimum balance and avoid monthly, annual and overdraft fees.
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The Consumer Financial Protection Bureau formally announced this week that it will investigate the overdraft fees that banks charge on checking accounts.
According to a 2008 study by the Federal Deposit Insurance Corporation, 9 percent of checking accounts incur 84 percent of overdraft fees.
There is a lot of disagreement over the value of overdraft fees.
This increases the risk of consumers paying overdraft fees on smaller purchases.
Some banks are still generating overdraft fees by posting transactions from highest to lowest dollar amount, rather than in the order they occurred.
Many consumer advocate groups feel strongly that banks and credit unions charge too much in overdraft fees, and do so in an unfair way.
Over the last year, banks have complained about losing significant revenue due to financial reforms, especially on limitations in overdraft fees on debit cards.
Of course, one would think that a depositor would realize if they were hit with heavy overdraft fees, but clear disclosure is always a good thing.
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Because overdraft fees basically subsidized free checking for all, the push to reduce them is forcing banks to reconsider how they charge for checking account services overall.
In a harshly worded decision issued late Tuesday afternoon, a federal judge in California ruled that Wells Fargo deliberately manipulated customer transactions in order to trigger overdraft fees.
No doubt about it, automatic overdraft fees are the pits.
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Overdraft fees remain a significant source of revenue for banks.
Carolyn Maloney and Maxine Waters have introduced a bill that would limit the cost of overdraft fees and prohibit practices that increase the likelihood customers will overdraw their accounts.
Congress will get another chance to limit checking account overdraft fees that continue to annoy customers and produce billions of dollars in revenue each year for banks and credit unions.
The online banks that do charge monthly fees also tended to charge lower amounts than traditional banks, and their average account minimums, overdraft fees and ATM fees were lower too.
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Banks have the misfortune to be confronting the discounters just when marketplace and legal changes are drying up some of their traditional revenue sources, like packaging subprime mortgages and gouging people with overdraft fees.
The reversal means that it and other banks will have to figure out new ways to recover revenue that is being lost from a host of new regulations on debit cards, credit cards and overdraft fees.
Blame it on regulation, banks have had to strike back with rule changes that impact how they can charge overdraft fees, as well as how much they can get from fees related to debit-card swipe fees.
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