ƒƒ March 12, 2009 Ms, Jennifer J. Johnson Secretary Board of Governors of the Federal Reserve System 20th Street and Constitution Ave, NW Washington DC 20551 Re: Regulation E- Limitations on fee-based automatic overdraft loan programs. Federal Reserve Board: Regulation E: R-1343 Dear Chairman Bernanke, Members of the Board, and Board Secretary Johnson: Consumers Union of U.S., Inc, the nonprofit publisher of Consumer Reports, writes to comment on proposed Regulation E – Electronic Fund Transfers [R-1343], the recent proposal to limit the ability of financial institutions to assess fees for paying ATM and one-time debit transactions that overdraw a consumer’s account. Consumers Union asks the Board to adopt Alternative 2- Opt-In Approach, which will allow overdraft loan fees only if the consumer has affirmatively consented to being enrolled in a program offered by their financial institution. Consumer Reports National Research Center conducted a nationally representative telephone 1poll about common bank policies involving overdraft fees, which found that many people don’t expect to be charged a fee when they overdraft their account. This suggests that if Alternative 1- Opt-Out Approach is adopted, consumers will be unlikely to opt out of a program of which they are unaware. We have attached this poll as Appendix B and it provides strong evidence of consumer preferences regarding these programs. We are glad that the ...