Consumer Law

Are Overdraft Fees a Things of the Past? Not by a Longshot.

By Brian Wolfman

Last week, new rules went into effect barring overdraft fees on ATM withdrawals and one-time debit card charges, unless the consumer opts in. We've discussed the issue extensively in the past.

David Lazarus in today's LA Times explains that the new rules don't cover many kinds of charges, and some banks are trying to convince consumers to opt in to "overdraft protection." Here's a brief excerpt:

[T]he [new] rules apply exclusively to ATM withdrawals and one-time-only debit card purchases, as opposed to recurring payments such as monthly deductions for a newspaper subscription or utility bill. Banks also remain free to enroll customers without permission in overdraft programs covering other transactions, such as payments with checks. And some are working hard to persuade customers to sign up again for full "protection," which can include fees as high as $39 for customers who didn't know that, say, a $2 cup of coffee surpassed available funds.

Full post as published by CL&P Blog on July 06, 2010 (boomark / email).