The Wenatchee World

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Ice Storm Warning issued January 17 at 2:53PM PST until January 18 at 4:00PM PST by NWS

...AREAS OF HEAVY ICE AND SNOW ACCUMULATIONS EXPECTED TONIGHT AND WEDNESDAY... .HEAVY PRECIPITATION OVERRUNNING A COLD LOW LEVEL AIR MASS ARRIVES THIS EVENING AND CONTINUES INTO WEDNESDAY BRINGING THE POTENTIAL FOR HOURS OF FREEZING RAIN... SLEET...AND SNOW. HEAVY MOUNTAIN SNOW IS A NEAR CERTAINTY. HEAVY ICE ACCUMULATIONS WILL

This Afternoon

Hi19° Wintry Mix

Tonight

Lo18° Wintry Mix

Wednesday

Hi31° Freezing Rain then Rain/Freezing Rain

Wednesday Night

Lo29° Wintry Mix Likely then Slight Chance Snow

Thursday

Hi36° Slight Chance Snow then Cloudy

Thursday Night

Lo25° Slight Chance Snow

Friday

Hi33° Rain/Snow Likely

Friday Night

Lo26° Snow Likely

Saturday

Hi33° Chance Rain

Saturday Night

Lo24° Chance Snow

Overdraft coverage? Great … if you’re the bank

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WASHINGTON — Overdraft protection often is a better deal for banks than for consumers, a new study by a federal watchdog agency reveals.

The report, being released today by the Consumer Financial Protection Bureau, found that consumers who sign up for banks’ optional overdraft coverage on debit card transactions and ATM withdrawals pay higher fees and are more likely to end up with involuntary account closures than those who decline.

Banks profit from consumers’ misfortune.

Fees for overdraft and nonsufficient funds accounted for more than 60 percent of banks’ total revenue from consumers’ checking accounts in 2011, according to the report.

Many financial institutions market their overdraft services as a protective measure that offers consumers greater peace of mind and security,” Richard Cordray, the bureau’s director, said Monday in a call with reporters.

They correctly note that consumers often benefit when overdraft transactions are paid, which helps avoid returned checks or declined transactions. But our study also raises questions. What is marketed as overdraft protection can in some instances put consumers at greater risk of harm.”

Cordray said the bureau plans to research overdraft programs further before taking any policy action.

Overdrafts occur when customers try to withdraw or spend more money than they have in their accounts. Banks can block the transaction and charge an “insufficient funds fee,” or allow the money to go through and charge an overdraft fee.