New Debit Card Changes Going Into Effect

By Aleshia Altizer

By now, you may have received a notice from your bank about new changes regarding your overdraft protection. An article from MSN explains that amid protest about the surge in overdraft fees, the Federal Reserve issued a new rule that took effect July 1st for new customers and takes effect August 15th for existing customers. Unless permission is given to the bank to continue with overdraft fees, beginning August 15th, any debit card purchase or ATM withdrawal that would result in insufficient funds, will be denied.

The article cites a statistic from a study by the Federal Deposit Insurance Corp. that says by 2008, 75 percent of banks were automatically enrolling their customers into overdraft programs that charged up to $39 for an overdraft. And according to the article, in many instances, customers weren’t clearly informed of their enrollment, as the information was in fine print or positively spun in marketing material. Some banks also weren’t clear on whether or not there were less expensive options for the customers to consider.

It’s important to always know what you’re signing up for, so you aren’t taken by surprise later on. Remember to monitor your accounts and follow up on any purchases or fees you weren’t aware of or don't understand. Pre-Paid Legal members have added peace of mind because they can pick up the phone and consult their Provider Law Firm regarding any legal question, as well as have their Provider Attorney go over any contracts or documents with them before they sign.