Posts Tagged ‘ Debit Cards ’

Debit Card Overdraft Fees – An Update

November 30th, 2009. By LucyC

First the good news—maybe—on November 12, the Federal Reserve announced that new rules governing the seemingly rampant application of overdraft fees linked to debit card use would be initiated. Now the bad news—maybe—the rules don’t come into effect until next summer—July 1^st, 2010 apparently. 

The development of these rules is a direct result of loud consumer reaction to the banks’ deceptive and abusive consumer lending practices.  

Of course the argument that the rules will provide any real benefit at all has just begun. More on that in a minute. 

So what protection will the new rules offer you? Here’s the scoop—straight from the Federal Reserve website: 

The final rules would “…prohibit financial institutions from charging consumers fees for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft service for those types of transactions. 

Before opting in, the consumer must be provided a notice that explains the financial institution’s Read the rest of this entry »

Tags: Banks, Debit Cards, Overdraft fees
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