Viewpoint: The OCC's Twisted Logic on Overdrafts
Wilmarth, A. E., Jr., American Banker
The Office of the Comptroller of the Currency's interpretive letter 1082 once again demonstrates the agency's bias in favor of national banks and against consumers.
The OCC recently issued the letter against the background of a major class action - Miller v. Bank of America - in which a California trial court ordered Bank of America Corp. to pay $1.5 billion to a large group of depositors. The plaintiffs alleged that B of A wrongfully debited their deposit accounts for overdraft charges in violation of a California Supreme Court decision. That decision prohibited banks in California from exercising a right of setoff against deposit accounts that contain Social Security funds and other government payments.
A California appellate court …
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Publication information: Article title: Viewpoint: The OCC's Twisted Logic on Overdrafts. Contributors: Wilmarth, A. E., Jr. - Author. Magazine title: American Banker. Volume: 172. Issue: 154 Publication date: August 10, 2007. Page number: 11. © 2009 SourceMedia, Inc. COPYRIGHT 2007 Gale Group.
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