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Director Takes Aim at Banks in New Film, 'Overdrawn!'

Debit card overdraft charges 'just didn't seem right'

By Mark Huffman
ConsumerAffairs.com

March 14, 2008
Karney Hatch was taking care of his grandparents in Moscow, Idaho a few years ago when he made an unpleasant discovery. While running a series of quick errands, picking up pharmaceuticals, household items and groceries for his grandmother and grandfather, he spent more money than he had in his account.

Since he was using his debit card and not writing checks, he was able to make the purchases because of the bank's automatic overdraft protection. But when Hatch opened his next bank statement, he realized the bank really wasn't doing him much of a favor.

"I had four purchases for a total of about $60," he told ConsumerAffairs.com. "But the bank assessed a $35 overdraft fee for each charge, costing me a total of $140. That just didn't seem right."

So Hatch gathered up a few friends and some video equipment and produced a documentary, "Overdrawn," which was recently completed. The-74 minute movie provides a close-up look at how the banking industry harvests billions of dollars from consumers in the form of overdraft and other fees.

With co-producer John Anderson and director of photography Brook Rutter, Hatch interviewed consumers, as well as consumer advocates such as Ralph Nader and Eric Halperin of the Center for Responsible Lending.

Going in, he figured it would be easy to get consumers to talk and harder to get to people like Nader. The reverse proved to be true.

"It was actually harder to get consumers who would talk to us on camera," Hatch said. "The were angry, but they were also ashamed – and I think the banks use that shame to keep them from protesting these fees."

What Hatch and other consumers find unfair about banks' overdraft policies is the lack of choice. The consumer is provided the "overdraft protection" whether they want it or not. Sure, the bank makes good on the $10 purchase, but it ends up costing the consumer an extra $35. Some protection.

Congressional action

In the course of producing his film, Hatch found a way to deal with the bank fees that he considers unfair. He made the discovery almost by chance.

"When I interviewed Nader, he explained to me about small claims court and urged me to try using it," Hatch said.

He did, resulting in one of the film's more uplifting moments. After making a series of small purchases on his overdrawn card, Hatch took Wells Fargo Bank to small claims court to have them removed.

Small claims court is a powerful, yet little used tool for consumers to seek justice. ConsumerAffairs.com has an extensive state-by-state Small Claims Guide, helping consumers take advantage of this institution.

"If a million consumers filed a million small claims court actions a year against the banks, the banks would either try to abolish the small claims court or they would improve their performance," Nader says at one point in the film.

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