It's Official: No More Overdraft Fees Without Opt-In

Feds go after bank fee 'profiteering'
By Jane Yager,  Newser Staff
Posted Aug 16, 2010 7:22 AM CDT
In this Jan. 18, 2010 photo, a customer uses an ATM at a Bank of America branch in Charlotte, N.C.   (AP Photo/Chuck Burton)
camera-icon View 1 more image

(Newser) – Say goodbye to the $35 Frappuccino. As of yesterday, if you don't choose to opt-in for overdraft protection, your bank can't saddle you with a hefty fee on the Starbucks beverage you don't actually have enough money in your account for. A new overdraft protection law has come into effect, and—as those whose banks have recently barraged them with calls and letters encouraging them to stay in overdraft programs may have noticed—banks are eager to get as many customers as possible to opt in, as overdraft fees are a major source of revenues.

Recent surveys suggest that about a quarter of bank customers will opt to keep their overdraft protection. The other three-quarters will see their cards rejected at the point of sale if their funds are insufficient. The Huffington Post offers a few money-management tips for those who pooh-pooh overdraft protection; click here to read them.

My Take on This Story
Show results without voting  |