There has been a blitz by Banks and Credit Unions to OPT IN their customers by the Aug 15th deadline. Banks and Credit Unions have spent the summer deluging customers with e-mails, letters and phone calls informing them of the change. Why?
New federal regulations prohibit Banks and Credit Unions from charging an overdraft fee on ATM and debit card’s when you do not have enough money in your account. Unless…you OPT IN, which then allows Banks and Credit Unions to charge you the overdraft fee. Several banks have dropped their overdraft program, Bank of America being one.
Banks and Credit Unions stand to lose quite a significant amount of revenue, but will make it up in other areas. Remember the days when you were charged for checking? Had to have a minimum balance? Charged for checks? Those days will be coming back.
1. OPT IN – Your transaction for ATM and debit card’s will go through even if you do not have the money in your account. Saving you the embarrassment. You will be charged an overdraft fee. Avg. Bank overdraft in the US is $35, Credit Unions is $25. Remember…this is per transaction. That $3 latte could be costing you $35.
2. OPT OUT – Your transaction for ATM and debit card’s will not go through if you do not have the money in your account! This could be embarrassing. However, it will save you an overdraft fee!
In the end it is your choice and your responsibility to manage your money effectively. The rich rule over the poor and the borrower is a servant to the lender.
Let me know your thoughts and comments.