When Do the Overdraft Fee Rules Apply?
As with all Federal Reserve rules, there’s a lengthy waiting period for the new rules. They don’t take effect until July 1, so you can be sure the banks will be doing everything they can to maximize their overdraft fees in the meantime. Be extra vigilant and take steps to avoid overdraft protection in the first place. Which Overdraft Fees Are Restricted? Under the new rules, overdraft fees will still be fully permitted as an opt-out program for bounced checks and online bill pay. Overdraft fees will be made opt-in for ATM withdrawals and one-time debit card transactions/purchases. What Does Opt-In Mean? Currently, most banks automatically enroll their customers in overdraft protection. They claim it’s for your “convenience” so your purchases aren’t denied. Most customers say they’d prefer to have their purchases denied rather than pay an exorbitant fee so they can buy a pack of gum. Under the new rules, all banks will have to ask their customers if they want overdraft protection for AT
