New rules to restrict overdraft fees

TAMPA - If you've ever bounced a check or had an overdrawn account, you know how that one mistake can quickly snowball into big fees.

Nathan Maggio is one unhappy bank customer.

"Hey, we're going to bully you around and do what we want with your money," he said.

Maggio says the overdraft fees his bank charges him are outrageous

"It said the whole time you had money there and then they'll knock you 30, 30, 30, for each one, like sometimes it could be $180 dollars for one mistake," he explained.

Now Maggio's complaints may have made it all the way to Washington.

Under new rules imposed by the Federal Reserve, starting this summer banks will have to get the customer's consent before charging large overdraft fees on ATM or debit transactions.

If the customer opts out any transaction that overdraws the account will be denied.

"You compound 5 overdraft fees at $35 a piece and then it becomes a domino effect," Julie Dennis said.

For some time now, regulators and consumer groups have complained the overdraft fees are unfair because customers assume they can't spend more on their debit card than is available in their accounts.

Yet the banks allow the transaction to go through, and then slap the customer with a $25 to $35 fee.

"You could spend a couple of bucks for coffee and paying $35 dollars in overdraft fees," Florida Consumer Action Network Executive Director Bill Newton said.

Newton is glad to see the feds stepping in and regulating bank fees, but thinks it doesn't go far enough.

"We would like to see congress go even further and regulate the amounts that's being charged, because these fees are outrageous," he added.

Federal officials say banks earn as much as $25 billion annually from overdraft fees.

Maggio knows he's contributed.

"How much should you pay if you go over your account $2? Like should you pay $50, $30, $10? I don't know," he said.