March 3, 2010
Federal Reserve Explains New Overdraft Rules for Debit and ATM CardsYour bank will be sending you a notice explaining the Fed's new overdraft rules for debit and ATM cards soon. The new rules require that banks, credit unions, and other financial institutions offer consumers the ability to make decisions about overdraft services for transactions made with their debit or ATM cards. In surprising plain English, the Fed explains what you need to know here. [JH]
Bank of America has a policy that the largest transaction of a particular day is debited first from your account. If that largest transaction put your account in the red, you are assessed the overdraft fee. As a single transaction, that is expected. The problem is that every transaction that happened on that day, because of that ordering policy, is assessed overdraft fee regardless of the time of day the transaction occured.
Posted by: Kevin Vetre | Jul 15, 2010 1:47:36 AM
It took a real act of the U.S. Congress to prevent banks from charging millions of bank consumers overdraft fees. August 15, 2010 this goes into action. I requested my bank to opt me out of overdraft protection last fall. They did not do it, and caused much grief over several accounts. The banks made over $30 billion in 2009 on just these specific fees. The banks will surely find other methods of recouping this fee loss per the new federal regulation. So watch your statements and where you use your debit cards.
Posted by: Chris Rogers | Jun 21, 2010 1:09:50 PM