The FAIR Overdraft Coverage Act will rein in abusive fees, give customers greater choice, and bring greater transparency to these programs. The bill would:
Limit the number of overdraft coverage fees banks can charge to one per month and six per year;
* Require fees be proportional to the cost of processing the overdraft;
* Stop institutions from manipulating the order in which they post transactions in order to rack up extra fees,
* Require customers be notified when they overdraw their account and be given the option of being notified by email, text or traditional mail; and
* Require that customers be warned if an ATM or branch teller transaction will overdraw their account, and be given the chance to cancel the transaction.