Wednesday, June 6, 2007
State Representative Erik R. Fleming, D-Clinton, has set a hearing for June 20, 2007 to discuss future legislation concerning NSF (or Insufficient Funds) fees. The hearing will take place at the State Capitol in Room 113, starting at 10:00 am.
Fleming said, "There have been concerns about how banks go about charging NSF fees and how they profit from them, at the consumer's expense. I am proposing legislation, should I be re-elected, that I believe will address this issue in a consumer-friendly manner."
Other legislators from the Mississippi Legislative Black Caucus that serve on the legislative banking committees will help conduct the hearing. Representatives from the Mississippi Banking Association, the Mississippi Department of Banking and Consumer Finance, and the Mississippi Center for Justice have been invited to testify at the hearing. The public is invited to attend.
Why is the current NSF limit $40? That seems a little steep to me considering that MS is the po'est state in the Union.
That is the rate set by most national banks throughout the U.S. That is why this trend of banks posting multiple checks, then taking out the largest check first, is so alarming. If the banks would process the smallest checks first, then it would not be such a burden on consumers. But with the current practice, instead of paying one overdraft fee, you end up paying multiple fees, it all depends on how many checks they process that day. The banks are making money hand over fist on this practice.
- Rep. Erik Fleming