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Beginning Sunday, banks and credit unions no longer can approve and charge penalty fees for one-time debit-card purchases that exceed customers' account balances unless the account holders have agreed to "opt in," or accept overdraft coverage.
For years, banks simply had denied these transactions. However, by allowing them to go through without the cardholders' consent and charging $34 for the "service," standard or "courtesy overdraft coverage" reels in more than $10 billion in debit card fees each year, the center estimates.
A 2008 survey by the FDIC found that 81 percent of banks allowed overdrafts on debit card transactions and ATM withdrawals, but only 8 percent informed customers of their cash shortfalls before the debit card transactions occurred. Only 23 percent did so on ATM withdrawals. Advance notice would have allowed customers to cancel the transactions and avoid the fees.
Originally posted by thisguyrighthere
They said "well, without this protection if you're out shopping and you buy something you dont have the finds for the sale will be denied."
I answered "if I dont have the funds what the hell am I doing going shopping?"
Originally posted by ErEhWoN
But I gave up using banks awhile ago, so personally, it will not affect me. My 'credit' is whatever I save up for.
Originally posted by EnlightenUp
reply to post by thisguyrighthere
Do you bank with Chase? I've been getting letters from them pressuring me into accepting their "discretionary" overdraft approvals, which, if approved, you don't deposit within the same day or something, they ding you. It's neither here nor there since I've never overdrafted myself. The only incident was the merchant's fault and was promptly cleared up.
Originally posted by spikey
reply to post by ~Lucidity
I took on a well known and popular UK bank i had an account with (briefly) and won my charges back, after threatening them with litigation.
They know they're crooked, and they do NOT want bad publicity.
They did to me, what other posters have said they do.
I ended up with - get this - £320.00 in O/D fees because i went overdrawn on a purchase made with a debit card.
How much had i gone overdrawn?
The grand sum of £0.62...62 pence! And i had a cheque waiting to clear.
They tried to 'fine' me £320.00 for an O/D of less than £1.00!