But PNC spokesman Patrick McMahon says customers can avoid a fee in several ways. They can opt out of the service or have the bank alert them by e-mail or text message when their account is low. And customers are given notice at the ATM if they are about to trigger an overdraft, so they can cancel the transaction.
Most often, he says, consumers want ATM and debit transactions to go through.
If you want to weigh in, you have until March 30 to let the Fed know your thoughts.
Submit comments online to regs. comments@federalreserve.gov. Make sure you put "R-1343" in the subject line. Or fax your comments to 202-452-3819.
More than 1,600 comments have been posted on the Fed's Web site.
Financial institutions that have submitted comments support the opt-out option.
"Our experience is that our members have come to expect this service to be available. We get appreciative comments of the cost savings it provides by not having to pay the merchant a 'return fee,' " writes Ascentra Credit Union in Iowa.
"Opt-in is the only way that consumers will be protected," counters Lauren Zeichner Bowne, a staff attorney with Consumers Union, which has been encouraging consumers to share their stories with the Fed.
Many have. Edward Rudow of Montgomery Village, for instance, wrote to complain that his college-age son was charged $170 in overdraft fees for five purchases that were less than $5 each and made on the same day.
And PierAngeli Morrison of Laurel told the Fed, "Now that taxpayer money has bailed out the banking industry, it is time for the banking industry to play fair and to curb excessive fees, i.e. ATM fees and overdraft fees."
