tonight on "nightline," consumers beware. an investigation into fat fees and profitable ploys that are costing americans billions and you may not know you're at risk. what you need to know to protect yourself. long live the king of pop. the world's greatest entertainer may have left behind a massive debt. but will a whole new fortune follow then of the times".

captions paid for by abc, inc. good evening. we begin tonight with an investigation into bank practices that may seriously damage your financial health. americans are tightens their belts in this economic downturn and for many that means turning away from the tell thais -- temptations of credit cards in favor of debits. many struggling banks are using new fee to cash in at your risk, and what they call service many consumers now call the shaft. as chris bury now reports. >> now that americans are cutting back on credit, that cup of coffee, tank of gas and bag of groceries are more than ever purchased with debit cards.

and banks facing a federal crackdown on their credit practices are tapping a new cash cow. and explosion in overdraft fees. >> how many overdraft transactions will you charge me for? >> if it's overdrawn for more than a day, is it just a one-time charge. >> is there a limit? >> a new national survey of 2,000 u.s. banks shows overdraft fees are climbing. what have you noticed above all in this survey? >> i think the major thing that we have noticed is a definite increase in fees. and that is rising. >> the biggest banks charge some of the fattest fees. >> we see a big gulf between what i like to call the wall street banks and the community banks and credit unions. those guys are at $33 and the credit unions are between 25 dollars and 27. $75.

>> if the fee for parking in a fire lane were dollars, they'd have hard time to get through. >> it feeds a gusher of revenue for the banks. >> $36.7 million -- >> just in overdraft fees. >> they're directing from the consumers and others. if we go back to 1992, it was $11 billion. >> when you look at the numbers up here, $37 billion you say, maybe $39 billion for 2009, is this the mother lode of fees? the overdraft fee? >> this is the mother lode. >> it's no accident. a growing cottage industry of consultants promises to help the banks boost their incomes by making it easier for customers

to overdraft their accounts. not long ago, bouncing a check or overdrafting a debit card was at the very least a humiliating embarrassment as jerry seinfeld's character learned the hard way. >> i noticed you bounced a check at the bidet odega? >> how did you know about that? >> it's posted up with the other bad checks. >> those days are over. >> why don't the banks just not approve transactions if you don't have the money in your account? >> it's -- i mean, it wouldn't generate as much money. >> so they do want you to overdraft? >> i believe they do. >> jake drew should know. a former vice president at bank of america idallas, he implemented computer programs to maximize bank revenue. how sophisticated are the programs to get as muc revenue as they can from overdrafts? >> the last one i work on, the

cost of the project was in the hundreds of millions of dollars. and represented over a million hours of just programming alone. >> so the banks know what they're doing? >> they do know what they're doing, they're very sophisticated at it. and they have the resources and the man power to get it done. >> the bank of america said it had no comment on drew's allegations. texas real estate agent jory walker discovered one of the new computer tactics that many banks now use. it is called transaction sorting. i means banks can -- it mines banks can clearharges any in der they choose. >> i thought they were taking advantage of the situation. >> a single $100 overdraft led to multiple fees because he said a bank computer program cleared an $850 check ahead of smaller charges that had occurred earlier. >> so they took things out of sequence? >> yes. yeah. and when i questioned themn

that over the phone they said they had the right to clear whatever they choose to at whatever time. >> in whatever order -- >> in whatever order. so instead of overdrafting once, it turned out that we overdrafted almost six times so it resulted in over 30 dollars per hit. even for items as small as like $1.50 purchase. >> so you had about $200 in fees? >> right. >> the banking industry defends transaction sorting now standard practice at many banks as reflecting the preferences of many consumers. >> people want you to call them up in the evening and ask them what transactions to pay, but that's not practical. they'll pay the highest ones first. >> many consumers have no idea they're even enrolled in overdraft programs. banks can sign them up without

their concept. that got richard breault into a trouble. he claims dollar overdraft on his debit card cost him $34 in fees. >> i don't want overdraft. if there's no money in the account, i don't want that card to work. you know, i don't with an to be able go into a -- i don't want to be able to go into a store to buy anything. >> critics consider this unwanted and outrgeously expensive loans. the consumer fed ray of america calls them deliberate, systemic attempts to hook consumers on to overdrafts as a form of high cost credit. >> i had a pack of dollar for $1.15 and they wanted me to pay $32. >> overdraft fee? >> right. which is an enormous -- >> an expensive pack of gum. >> yes. an enormous interest rate charge on that. >> the interest quickly adds up for an average overdraft of $20

and the average fee is $27. >> if you took an average two weeks to reconcile your account after you overdrafted it, you'd be paying 3,500% interest. >> 3,500%? >> is it simple to you? >> most keep a cushion, by linking to another account or by arranging for the bank to alert them when their balance goes below a certain threshold. >> some of the banks charging the biggest fees are the ones that taxpayers are bailing out. >> my tax dollars along with yours and everyone else's went ey're e ba to business as usual. and we need to put a stop to it. >> the federal reserve concerned about overdraft abuses is proposing new rules reqequiring banks to spell out all their fees and get customers' consent before they're enrolled in

overdraft programs. >> again, i'm sorry about the check. >> but what used to be so embarrassing has now become rich, w stream of revenue for banks that have figured out even more ingenious ways of turning rubber into gold. i'm chriris bu for "nightline" in dallas. >> thanks to chris bury. you can ad more about the fees and how you can protect yourself in tomorrow's edition of the "uesod tay." when we come back, michael d jackson's fortune in life may have been a story of black and white, but in death is it gold? we'll ask another king. you'll never go back to your old mop agai ♪ don't you want me baby? ♪ don't you want me ohhhh! [ femama announcer ] whwhgo part of t w way clean?

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day ♪ we have new footage tonight of the late michael jackson's three sisters, latoya, janet and rebby in los angeles paying

tribute to their brother shortly after the memorial service yesterday. >> first of all, thank you -- thank you for all of your support. michael will remember this. >> at his peak, michael jackson was not only the world's greatest entertainer, but had a great fortune. of course, that wealth had been severely reduced by massive amounts of debt. but if another king is another indication, then his earnings power will have a second life as chris connelly reports. ♪ >> man in the mirror -- >> as sensationally lucrative as michael jackson's music was in life, it could be a sadly ironic truth for celebrities, especially pop stars, that their passing can actually enhance their worth. ♪ >> the tragic circumstances of these deaths at a young age at

50 years of age for him for being in the music business only increases the interest. >> so says mark rosler who has had the iconic status of marilyn monroe and he expects michael jackson to outearn them all. even elvis. >> it's hard to say th anybody could eclipse what his future earning potential probably is. >> it may seem like a creepy thought. in the film "it's a wonderful life" the idea scared the living daylights out of jimmy stewarts' character. but he says this has incomparable value. >> michael jackson's name has magic and power to it right now. and i don't see th diminishing any time in the near future.

>> the numbers don't lie. since his death on june 25, michael jackson's songs have dominated radio station playlists and itune downloads. there were some three million this week alone. memorabilia has been flying out of outside tables and indoor shelves. sales of his cd's have spiked from 10,000 week to 1.1 million over the last two weeks. jackson's albums occupied the entire top ten at amazon.com and barnes & noble's. and that's just the beginning. there are hopes that the comeback show in which michael jackson was to star in london may continue somehow, still featuring his songs. ♪ a rendion of one of its numbers appeared at the end of yesterday's memorial service at staples center.

♪ >> the memorial service took michael jackson's often troubling life and refocused public attention on to the positive elements. this michael was a humanitarian, a staunch friend, a consummate entertainer. ♪ ♪ you are not alone, i am here with you ♪ >> so some day could there be commercials with michael in them? well, it happened to the king. >> here you have -- >> coffee, just coffee. >> not of pop. >> the king. >> but of rock 'n' roll. ♪ >> thanks in part to image kick start -- ♪ >> like this 2002 remix of "a little less conversation". more than three decades after his death, elvis presley remains a high-earning cultural icon. >> i have heard speculation about what the gdp produced by

elvis' existence would be and those estimates are always in the billions. >> presley was found unconscious in his mansion at 2:30, he was pronounced dead an hour later. >>is viewing at graceland in august of 1977 uncorked an outburst of affection for his image. >> elvis' legacy needs protecting, it deserves protecting. because frankly left in the public domain things tend to sink to the host common denominator. there seems to be something in elvis for everybody. >> not to mention those elvis impersonators like vegas fixture jesse geren. >> we got so busy, we were up to 30 weddings a week. >> and if elvis any example, michael jackson's legacy may follow a similar path as he remains both in their hearts -- ♪

-- and on the charts. i'm chris connelly for "nightline" in los angeles. >> king of pop's posthumous earnings potential. when we come back, one part world leader, one part ladies man. the scandalous life and times of sylvio bluonersci. (announcer) imagine one eye drop so exceptional,

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presidt obama along with leaders from the world's other most industrialized nations have agreed to limit the rise in the global temperatures to two degrees centigrade by the year 2050. the consensus was reached earlier today by the g-8 summit in italy, but the leader of the host nation is already feeling the heat for altogether more personal reasons. and for nick watt, "it's a sign of the times". >> today, sylvio berlusconi shows president obama around the

earthquake-damaged jewel. meanwhile prosecutors investigate claims that berlusconi slept with prostitutes. back at the g-8 leaders grappled with goals on climate change. meanwhile, lawyers for berlusconi's wife prepare her case for divorce. back at the g-8 leaders affirm their commitment to restore worldwide economic growth. meanwhile, berlusconi's lawyers fight to block future publications of girls cavorting at his villa. >> he is just entertaining himself. >> are the well-oiled wheels coming off berlusconi. for years he's led a charmed life. >> berlusconi is a very funny person, and a lot of the italian

people want his mind. >> silver tongued charmer in the land of amore. ♪ ♪ amore >> a land where a prime minister's security detail looks like this. >> most italian men like the idea of a man who as he grows older has fewer wrinkles and more hair and plenty of girls. >> his political opposition is weak and berlusconi controls much of the italian media. >> you can get away for a longer period. >> anyway, most italians, even journalists don't much care what the boss gets up to from the waist down. >> what berlusconi in his private life is not my problem. >> italians expect their policians to be sleazy and lascivious so forgive them when they are. oh, how governor sanford must wish he was italian. >> a year and half ago there was a member of parliament who was caught in a hotel with two

prostitutes and his only response was since he was away from his wife, he should be able to charge them to his expenses. >> but now perhaps berlusconi has pushed it too far. here's the story. i suppose a bedtime story. sylvio is married to veronica who first caught his eye as a young and topless actress on stage. some years ago. she's now over sylvio's promotion of young women as election candidates. by the bay, a former topless model escorted g-8 wives with the pope. paparazzos have increased veronica's ire by snapping topless females and even a bottomless male, a former czech prime minister at sylvio's

beachside pad. >> they don't mind what he's been doing, but they're getting tired because he's making italy look silly. >> in april berlusconi brandishing a diamond necklace as a gift attended a lingerie's model 18th birthday party. veronica went nuts accused her husband of consorting with minors. and filed for divorce. but still it gets worse. a number of women now claim that they were paid to attend parties at berlusconi's homes. we chatted very nice, we joked. we sang claims barbara. other girls called him happy. they called him happy and he called them thumbelina. one woman claimed she had sex with the leather-skinned lothario. so far, berlusconi's approval rating has only slipped slightly

and the home boys are sticking by him. >> these are rubbish or other things. >> it's a very, very little man. >> even though we are in italy i think we should have more respect for women in general. >> the economic and social crisis is biting hard. and this makes it even more unbearable to know and to think that your prime minister is, you know, behind girls when he should be behind other things. >> even the pope is now talking about a need for morality in politics. and dissenting voices are multiplying. i'm nick watt for "nightline" in london. >> troubled times for the italian prime minister. our thanks to nick watt and we'll be right back.