El overdraft fee scrutiny Bank

I Examiner-Enterprise
Home sales rise
Existing home sales rose 4.3 percent in January to an annual rate of 4.57 million.
6 million

Business Desk 918-335-8245

4.57 millionhomes

January

Seasonally adjusted annual rate 11 2007 2008 2009 2010 2011

21

SOURCE: National Association of Realtors

AP

Sunday, February 26, 2012

CONSUMER FINANCE AGENCY WILL PROBE HOW FEES ARE MARKETED TO CONSUMERS
from four consumer advocacy groups said that the overdraft fees hurt the people who can least afford them because poorNEW YORK (AP) Of all the er customers are more likely to bank fees that customers love drain their checking accounts to hate, overdraft charges on to close to zero. checking accounts have to be Since the 2008 financial near the top. The government's crisis, the government has new consumer protection agen- clamped down on bank praccy appears to agree. tices that it considers unfair, The Consumer Financial Pro- such as marketing credit cards tection Bureau said Wednesday to teenagers. Banks have cornthat it will investigate overdraft plained some of the governfees, including how they are ment's moves have been too marketed and explained to cus- intrusive. tomers. The agency said the In 2010, the Federal Reserve probe could result in additional barred banks from automatrules, perhaps even lawsuits. ically enrolling customers in Overdraft fees are charged so-called overdraft protection by banks when customers try programs for debit card or ATM to spend more money than transactions. Without overdraft they have in an account. Banks protection, a transaction is will allow the transaction, then declined if the customer can't charge the customer a penalty cover it. The rule did not apply to of as much as $35. "We've heard many stories checks, online bill payments about the $40 cup of coffee," or recurring debits, such as the agency's director, Richard having the monthly cable bill Cordray, told reporters and rep- automatically sent to your debit resentatives from banks and card. It also did not limit how consumer groups. much banks can charge for the Cordray and representatives service.
By Christina Rexrode and Daniel Wagner AP Business Writers

Banks have responded by marketing overdraft protection aggressively. Some told customers that opting out of overdraft protection could prevent them from making everyday transactions, including "medical or health emergencies," according to research published last year by the Center for Responsible Lending, a consumer group that opposes overdraft fees. Banks collected $29.5 billion in revenue from overdraft fees in 2011, according to research firm Moebs Services. That was down from $33.1 billion in 2010 but a significant increase from $18 billion in 1999, when the fees were less common. Cordray said the problem is not just the fees but that banks often don't explain them clearly. One bank, which he did not name, required customers to visit three different websites and scroll through 50 pages of dense text just to get an explanation, he said. Cordray praised banks for finding ways to help customers avoid the fees, such as not charging overdrafts for purchases of less than $5 or giving customers 24 hours to add more money to an account. Representatives of consumer groups who appeared with Cordray said customers would

rather have their cards declined than be charged the fee. A representative of Citigroup, one of the country's largest banks, said customers prefer to avoid the embarrassment. Andrew Rowe, a senior vice president from Bank of America, said the bank has started giving customers "clarity statements" to explain fees and sending them text messages when their accounts drop below $25. Last month, Bank of America sent 20 million such texts to 8 million customers, Rowe said. Bank of America was a leader in trimming overdraft fees beginning in 2009, when Brian Moynihan, now the CEO, was running the bank's consumer banking unit. At the time, the bank owed $45 billion in government bailout loans. It has since paid the money back. Banks have also drawn criticism for a practice known as "re-ordering" when a bank takes all the purchases a customer makes in a single day and subtracts the biggest ones from the customer's account first. Banks say it helps customers pay their most important bills first, like mortgages and student loans. Consumer groups say it's a way to rake in fees. The practice has been chal-

Cordray lenged in class-action lawsuits around the country. Bank of America settled one case for $410 million last July. JPMorgan Chase agreed this month to pay $110 million to settle similar claims. The CFPB, born out of outrage over the financial crisis and the banking practices that led to it, said it would focus on four areas: re-ordering, missing or confusing information, misleading marketing and disproportionate impact on lowincome and young customers. According to a 2008 study by the Federal Deposit Insurance Corp., 9 percent of checking accounts incur 84 percent of overdraft fees. The study found that nearly half of younger cardholders paid the fees.

Osage Nation Foundation board member sworn in

PAWHUSKA Osage tribal member and entrepreneur Julie O'Keefe was sworn as a board member to the Osage Nation Foundation Board of Directors by Osage Nation Principal Chief John D. Red Eagle last week. With more than 20 years experience in projects involving a variety of products, including furniture, porcelain, promotional items, education tools and toys, O'Keefe brings a breadth of knowledge to the foundation. "Julie will be a very valuable asset for the Osage Nation Foundation in her role as a board member," Red Eagle said. "She has a proven and successful track record, and is a natural fit to fill this vacancy." The appointment is an interim position to complete the five-member board. The nomination will go before

AT&T open house

The local AT&T store hosted a breakfast/informational open house for chamber members on Friday morning.At left is Bartlesville Regional Chamber of Commerce executive Sherri Wilt. Jerry Bayliss, third from left, is with AT&T External Affairs Oklahoma.The event was attended by local business people, elected officials (Reps. Steve Martin and Earl Sears) and chamber representatives. Demonstrations of the latest digital communications devices were held.
Chris Rush/Examiner-Enterprise

See BOARD on D8

Youth Leadership Bartlesville seeks high school applicants

The Bartlesville Regional Chamber of Commerce is currently accepting applications for it newly revised Youth Leadership Bartlesville 2012 program, which has been rescheduled to a summer format. "We were planning to host the program this semester, however, we found that between rigorous class schedules and absences due to extra-curricular activities, it was hard for many interested to schedule the program in during their busy second semester. So we revamped it and went back to a summer format, similar to what we have done in the past," explained Sherri Wilt, president, Bartlesville Chamber. The program was created by the Chamber to motivate and equip high school juniors and seniors with leadership skills through activities and interaction with community leaders. It is designed to enable high school juniors and seniors the opportunity to enhance their leadership skills, gain an in-depth perspective of the issues in their city and take an active role in improving their community by introducing them to volunteer opportunities. They will also be exposed to career opportunities and learn about intern programs. Area students who will be juniors or seniors during the 2012-13 school year or who will graduate in 2012 and who possess a 3.0 GPA are eligible to apply. Students must reside in Washington County and may attend Bartlesville, Dewey, or Caney Valley public schools, area private schools, or be home schooled. Tuition is $100, however, scholarships are available and the chamber encourages all interested to apply. There are six sessions required. The program kicks off June 16 with an opening retreat. The next five sessions are held on Tuesdays from 8 a.m.-3:15 p.m. beginning with June 19 Heath and Science, June 26 Business and Industry, July 10 Community Services, July 17 Quality of Life and July 26 City Government. Application deadline is March 15. Applications can be downloaded by going to bartlesville.com and click on Youth Leadership link. Applicants will be notified of acceptance by March 30.

TAX FAX

Taxpayers: Don't forget $1,000 child credit

he IRS wants to remind taxpayers not to forget about the $1,000 credit for qualifying children. The seven qualification tests are (1) age a child must be under age 17, (2) relationship the child must be a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these, (3) support the as a dependent on the return, (5) joint return the child cannot file a joint return for the year, (6) citizenship the child must be a U.S. citizen, U.S. national or U.S. resident alien, and (7) residence the child must have lived with taxpayers for more than half the year. The credit phase-out begins at $110,000 of Adjusted Gross Income for married filing joint ($55,000 married filing single).

Arvest Bank introduces new deposit-image ATM

Arvest Bank in Bartlesville now offers deposit-image ATMs to its customers. Customers utilizing this new ATM technology are able to directly deposit checks and cash, without the hassle of an envelope, and receive a receipt back with an image of each check deposited. This receipt is an extra security feature that provides proof of the deposited checks. "We are consistently working to provide our customers with the latest in banking technology as we keep their security in mind," said David Kedy, president of Arvest Bank in Bartlesville. "These new machines will help us continue down that path, and we're looking forward to providing this convenience going forward." Arvest Bank recently installed one Deposit Image ATM in the drivethrough at the Colonial Branch located at 2651 S.E. Washington Blvd., and future installations are planned as old machines are retired. The automated teller machine was introduced to the market by various banks and inventors during the 1960s in both the United States and the United Kingdom. The first ATMs were cash dispensing machines that have evolved to add more function and safety. Today, there are a variety of machines on the market that fit into the description of an ATM. These include bank-owned machines that accept deposits, issue cash and provide
See DEPOSIT on D8

Debbie Mueggenborg
E-E COLUMNIST

child must not have provided more than half of his own support, (4) dependent the child must be claimed