Fed: Banks Need Customer Consent on Overdraft Fees

WASHINGTON (AP) — Banks will have to secure their customers’ consent before charging large overdraft fees on ATM and debit card transactions, according to a new rule announced Nov. 12 by the Federal Reserve.

The rule responds to complaints from consumer groups, members of Congress, and other regulators that the overdraft fees are unfair because many people assume they can’t spend more on a debit card than is available in their account. Instead, many banks allow the transactions to go through, then charge fees of up to $25 to $35.

For small purchases, such as a cup of coffee, the penalty can far exceed the actual cost of the transaction.

Amtrak Preparing for Thanksgiving Travel

WASHINGTON (AP) — Amtrak is preparing for what it believes will be its busiest travel day this year.

Amtrak said Nov. 16 that it believes the Wednesday before Thanksgiving — Nov. 25 — will be its busiest travel day.

The railroad predicts ridership could be as high as 125,000 passengers that day. On an average Wednesday, the railroad carries roughly 74,000 passengers.

Amtrak says it is scheduling extra trains to accommodate additional passengers, but the company is encouraging riders to plan ahead.

All Amtrak trains in the northeast will require reservations. A special timetable for Thanksgiving travel in the northeast corridor is now available online at the company’s Web site.

On the Net: www.amtrak.com.

Jobless Claims Fall, But Hiring Gains Seem Far Off

WASHINGTON (AP) — Fewer people are claiming unemployment benefits — but still too many to signal that the economy is close to gaining jobs.

First-time claims for jobless benefits dropped recently to a seasonally adjusted 502,000, the Labor Department said Nov. 12. That’s the fewest claims since the week ending Jan. 3.

Claims would have to fall to the high 400s to indicate the economy could soon produce even a slight gain in jobs, Abiel Reinhart, an economist at JPMorgan Chase,  estimated. That level of claims could be reached by January, he said, and the economy should start gaining jobs sometime in the first quarter of 2010.

Partnership on Housing and Community Stabilization Launched

(Urban League) — The National Urban League has entered a three-year, multimillion-dollar partnership with Wells Fargo to address challenges within the African American community, starting with a focus on sustainable housing and community stabilization.

During its first year, the multifaceted relationship will include grants to selected Urban League affiliates for foreclosure counseling, technical assistance for foreclosure prevention programs, staff training on foreclosure counseling and a significant presence at Urban League events — including its annual conference.

Wells Fargo’s Hands on Banking financial education curriculum — which includes a focus on credit management — also will be an integral part of the campaign.

The partnership builds on an initiative announced earlier this year between the Urban League and Wells Fargo to co-sponsor a new edition of “The Foreclosure Workbook: The Complete Guide to Understanding Foreclosure and Saving Your Home.” A reprinting of this workbook will be part of the effort the two organizations will undertake over the next 12 months.

California Export Trade Figures Improving

SACRAMENTO (AP) — California’s export trade is showing signs of improvement after being battered all year.

Jock O’Connell, international trade adviser at the University of California Center Sacramento, says the state’s exports from September showed a 3.2 percent gain from August.

But the export trade of $10.35 billion is still 16 percent below the amount of goods the state shipped abroad the same month last year.

It was California’s lowest export figures for the month of September since 2005.

O’Connell says the data suggests Northern California is recovering faster than Southern California. The number of containers leaving the Ports of Los Angeles and Long Beach was down 8.9 percent in September while the Port of Oakland saw a 12.5 percent gain from last year.

Foreclosure Assistance for 26th District Residents

State Sen. Curren D. Price Jr. will join forces with Bank of America and Chase Nov. 21, 10 a.m., to come to the aid of thousands of 26th District homeowners who could lose their homes to foreclosure.    

This “Making Your Home Affordable” workshop will offer direct assistance from mortgage lenders to homeowners. The event will be held in the Wallis Annenberg Building of the California Science Center, 700 Exposition Park Drive, Los Angeles.

This workshop is free and no appointments are necessary. Certified housing counselors and mortgage loan servicers will provide advice, counseling and assistance at this event. 

Bank of America Home Loans (formerly Countrywide Home Loans) and Chase will have representatives at the event to consider and approve loan modifications.