Beginning Monday, banks will NOT charge you an automatic overdraft fee if you have insufficient funds to cover debits on your ATM card. What does this mean for you? Well, if you use your ATM card, and you don't have the funds to cover the debit (for what ever reason) the bank can NOT automatically allow the purchase/bill to go through while charging you a fee. Your card will instead be DECLINED.
Why Do Banks Charge Overdraft Fees Anyway
Banks started allowing this practice to gain a piece of the action payday loan companies were getting by jacking people out of billions of dollars every year. The banks make a shit-load of money every year charging you $25 -$30 every time you buy an extra-value meal without the money to cover it. Remember, back in the day your card was declined if you didn't have money in the bank? Wow what a concept.
The Banks Are Still Hustlers
Don't think the banks are letting go of your money that easily. You can still opt to let the bank "have your back" just in case you come up short, which is not necessarily a bad thing. Your bank will likely ask you if you want to have your debits covered for a one-time fee (per day). The bottom line is, I want you to be informed to make the right decision for you. beginning Monday, If you don't op in, your card will not have automatic overdraft protection. I just wanted to repeat it, so you won't do the fool on some poor person who "don't know you like that."
Please let me know if this information was helpful. I want to hear your thoughts. If you're not getting these updates by email, don't forget to sign up on the right side of the page.
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Hillerie Camille
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6 comments:
Please twitter this link and share it on facebook, so we can inform our folks.
This link was very informative. I didn't realize that this had been implemented. Maybe it will force some people to change their spending habits - actually learn how to balance a checkbook. I would like to think folks won't be so quick to swipe if the risk is getting your card handed back to you and having to walk away with your items still on the counter!
readinghaspurpose. You are so right, that's why I wanted to tell everyone about this. Thanks for reading!!!
I, too, found this article very informative. I'm personally sitting on the fence about this. On one hand, I think I would rather prefer to get the "Declined" message than to be hit over the head with overdraft fees! But then again, I do think that the banks will find another way to tax consumers for having "Insufficient funds". For those of us that pay bills online, we all know that there is a lag between when you actually click the button to pay your bills and when the money is transferred. So you may think that the money is in the bank, and then five days later realize that the bill posted at 11:59 pm Thursday night RIGHT BEFORE your paycheck directly deposited into your account at Midnight! **LOL** I know I'm being dramatic, but these are the things that I think about after falling victim to ridiculous overdraft charges.
G, you're right. The banks are slick. They don't process the transactions in the order you purchase, they process the largest transactions first. That's why we get "taxed" for that pack of gum.
Now I hate to be the devil's advocate, but as a person who used to work for a credit union, I must say that this is very informative and you should definitely inform the masses. Basically put, most ppl did not know that financial institutions could charge you an overdraft fee for spending more than what is in your account.
While that is seen as slick in some eyes, it's quite reasonable...when you spend money that is not in your account you are basically taking someone else's money. So even if it a $1 hamburger or $1 fry...if you don't have it, don't spend it! check your account constantly and keep a register of your spending. If you were at McDonalds and were a few dollars short, you wouldn't expect that some stranger will cover for you, so why do you think that the bank should? You'd be floored at how many people overdraft their accounts (constantly).
Simply stated, we as consumers need to take a bit more ownership of our spending and keep track of how much money we're working with. Won't have to worry about overdrafts if we become a bit more responsible!
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