One of the results of the regulatory overhaul was that banks couldn’t automatically enroll people in “overdraft protection.” This kicked off a mammoth effort by banks to try to convince customers it was in their best interest to sign up for a program that would let them get charged $35 for overdrafting a $1 candy bar rather than go through the pain and humiliating of having a card declined. But a new survey by the Center for Responsible Lending found that most of the people who did opt in either had a misconception about how the overdraft protection, or simply wanted the ceaseless onslaught of pitches from their bank about it to stop.
Of the 33% of those surveyed who said they opted in…
- 60% said a big factor was to not have a fee when their debit card was declined. Sadly for them, declined debit cards don’t result in a fee.
- 64% said an important reason was so they wouldn’t bounce checks anymore. Cue descending slide whistle sound effect, opt-in rules only cover debit card and ATM transactions.
- Nearly half simply wanted the bank’s barrage of opt-in messages by mail, phone, email, on-line and in person to stop.
If you opted-in to overdraft protection for the wrong reasons, pick up that phone and opt yourself the heck out.
BANKS COLLECT OVERDRAFT OPT-INS THROUGH MISLEADING MARKETING [Center For Responsible Lending]