It's Time to Retire Mandatory Overdraft Fees

"After evaluating the comments and conducting additional consumer testing, we expect to issue a final rule later this year," Sandra F. Braunstein, director of the Fed's division of consumer and community affairs, told a House subcommittee recently.

The Fed wants to know what consumers think. You only have until Monday to submit a comment. The easiest way is to respond by e-mail or go online. E-mail your comments to regs.comments@federalreserve.gov. Put "Docket No. R-1343" in the subject line. Online you go to http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.

I really don't see where there's any debate on this issue. People should have the opt-in choice so they can avoid transactions that have wreaked havoc with their finances.

For example, a 72-year-old retired schoolteacher on a limited income was charged $1,000 in ATM and debit overdraft fees within six months. Her fees totaled nearly $350 for one month alone. The woman's daughter, who has since taken over managing her mother's account, was outraged to learn the bank had regularly allowed electronic transactions when her mother's account was in the negative.

"How insane to continue accepting overdrafts when the funds aren't there," the daughter said.

Without question, bank customers should responsibly manage their money and banking accounts. But the ease of using ATM and debit cards has made people careless.

The more consumer-friendly way to address this problem is to allow people to be informed that they are broke before a transaction is approved. At that point, they can decide whether they want to accept the overdraft protection and the fee. I doubt the banks will suffer a significant loss of income. There are plenty of people who will still choose to pay the price for this service.

-- On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and at http://www.npr.org.

-- By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

-- By e-mail: singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.