November 20, 2009

U.S. banks are easing how much they charge customers on overdraft fees, according to fresh data, but the move isn't likely to prevent a sweeping round of new regulations for this hot political issue.Over the last five months, U.S. banks raised their standard overdraft fees at the slowest pace in 17 years, according to Moebs Services Inc., which provided the data to Dow Jones Newswires. Banks charge overdraft fees to customers who run negative account balances.

After being bombarded for months by the classic story of customers who unwittingly paid $40 for a cup of coffee, the largest U.S. banks by assets, which charge the highest overdraft fees,posted a modest decline for the first time in 17 years."This is the first time in 17 years that I have seen any of the big retail banks lower fees," said Mike Moebs, founder of the Lake Bluff, Ill., consulting firm that samples more than 2,000 institutions. He said the retail banks with over $50 billion in assets hold 45% of the nation's checking accounts.