In a ruling announced today from the Federal Reserve and set to take effect on July 1, 2010, Banks will no longer be able to charge the exorbitant overdraft fees that have become so common in recent years. A source of billions in revenue, these fees have become so common that many banks rely on them as a major source of profit. The new ruling requires customers to grant permission to the bank before payment of items that exceed the customer’s account balance and applies to debit card and ATM transactions.
Consumers will no longer have to worry about spending $5 at McDonalds and being hit with a $35 overdraft fee. However, those who do opt for overdraft coverage will, of course, still suffer the consequences.
Another option, though a bit unconventional, but which costs nothing and insures that such excessive bank charges will NEVER be charged, is for customers to balance their checking account monthly and not make purchases when they don’t have money. While such a solution may seem outlandish to many, those who use this system report that it is fail safe.
For more info on this ruling visit: Yahoo Finance
The Housing Guru: The one source for all your housing questions
Comments(13)