After all the racket that banks have started on the topic of overdraft surcharges for ATM and debit card dealings, the Fed has put a new regulation in position that requires banks to get their customers’ approval before they are able to charge fees due to an overdraft. The rule is to go into effect on July 1st.
The rule came after consumer groups kept receiving complaints from clients and members of Congress even believed that the overdraft surcharges were excessive.
Many individuals believe that if their debit card is cleared for the debits, then there isn’t a difficulty with the sum of money in the bank.
I have always found it odd that overdraft fees always come from the smallest of debits and it is often something like a mug of coffee. I can only remember getting an overdraft charge one time and it was for a beverage from a convenience store. The only trouble I had was the bank, which I had just stopped by and checked my balance, said I had more than $25 in my account.
It turns out some banks partake in a strange accounting custom that allows for trivial dealings to go through while deposits get postponed.
I am really happy that the Fed got concerned and decided to put this rule into effect. I wish it would have been put into place somewhat before than July 1st of next year, but I believe better late than not at all. Now if only a few people were able to regain some of the overdraft surcharges that have been collected over the years for the “peculiar” accounting rules I was talking about before.
After all the uproar that banks have started regarding overdraft fees for ATM and debit card dealings, the Federal Reserve has put a new regulation in position that requires banks to get their customers’ approval before they are able to charge surcharges due to an overdraft. The rule is to go into effect on July 1st.
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Greg Jackson
