Another area where regulation isn't desired or necessary. Seriously, I got fed up with overdraft fees at my bank and the fact that they were paying me less than the rate of inflation for the privilege of leveraging my capital, so I switched to a local credit union and never looked back. This definitely falls under something that a free marketplace is better at sorting out than additional bureaucracy.
The credit union does not have to charge additional fees because they have tax exempt status with the government. If they had to compete on a level playing field, they would be charging fees just the same as the big banks. Just pointing out that this is *not* a free marketplace sorting this out, but rather government control that gives you this separation.