Each year, banking customers spend an estimated $32 billion on overdraft fees. While many banks have modified their policies regarding the costly fees, recent reports found those changes aren’t enough to protect most consumers. Now, in an effort to add to those protections, one lawmaker is pressing banks for more information on their policies. [More]
overdraft protection
CFPB To Banks: Offer More “No Overdraft” Checking Accounts, Provide Accurate Credit Information
By 2.3.16
Some 10 million Americans are considered “unbanked,” often because they are believed to pose too high a credit risk for a bank to offer them a standard checking account. But the federal Consumer Financial Protection Bureau believes many of these people could be brought into the fold if more banks were to offer lower-risk deposit accounts that provided the benefits of a checking account without being a risk to the financial institution. [More]
As Fewer People Overdraft, Banks Are Raising Overdraft Fees
By 4.2.14
If you’re still opted-in to overdraft “protection” — which protects you by slapping huge fees on every purchase you make beyond the available funds in your account — you should probably opt out, as the costs associated with this lucrative system are on the rise. [More]
Bank Of America’s New Debit Card Charges $5/Month For Something That Is Free On All Accounts
By 3.7.14
Bank of America is in the news because it’s testing a new debit card that won’t let customers overdraft. For that privilege, cardholders will pay a $4.95/month fee and they won’t be able to write paper checks. Thing is, anyone with a bank account can turn off overdraft protection without being required to pay a fee. [More]
CFPB: Bank Customers Leaking $225 In Overdraft Fees Per Year On Average
By 6.11.13
Why is your bank account leaking so much money ever year? Where does it all go? Checking account customers are bleeding funds to the tune of about $225 per year on average, the Consumer Financial Protection Bureau says in a new study. That means that despite regulations aimed at lessening the effects of overdraft fees and clear up the whole process. [More]
My Breakup With Wells Fargo Was Weird And Awkward
By 10.28.11
Matthew has spent 23 years as a customer of a bank that was eventually gobbled up by Wells Fargo. Finally tired of the bank’s shenanigans, he moved his personal checking account to a local credit union. What he didn’t count on was that Wells Fargo didn’t want to let him go, and would stop at nothing to get his attention. Even overdrafting his account instead of declining transactions. [More]
TCF Bank Adds New $28 Daily Overdrawn Balance Fee
By 10.14.11
Reader Jeff used to intentionally overdraw his bank account in order to have enough money to feed his family and gas the car. At $35 a pop, that’s a pretty cheap loan. But now that’s not going to be a viable option because TCF Bank has started to assess him a daily fee of $28 if his account is overdrawn by $5 or more. [More]
Opt In To Overdraft Protection Right At The ATM
By 7.29.11
ATMs exist for routine banking transactions…deposits, withdrawals, balance inquiries, opting out of overdraft protection. Wait, what? GitEmSteveDave noticed, but didn’t test, this option on a Sovereign Bank ATM. “I wonder how many people hit the button by accident and end up giving their rights up,” he writes. Convenient, or dangerous? [More]
Chase Just Goes Ahead And Adds Overdraft Protection To Your Account
By 9.16.10
Lori called up Chase to tell them that she was traveling internationally in the next few weeks. She wanted them to note her account so there wouldn’t be any blocks when charges from far-away countries started appearing. Then the fast-talking rep just sort of added overdraft protection to Lori’s account, just casually worked it in there, like she was doing her a courtesy. [More]
BofA Customers, Watch Out For Overdraft Protection Auto-Enrolling
By 9.7.10
Will was meticulous about avoiding the succubus that is overdraft protection in his Bank of America checking account. So you can imagine what happened to him: The bank automatically stuck him with the so-called protection thanks to an automatic function that stuck him with a $100 credit card cash advance, along with the accompanying finance charges. [More]
Remember: Checks Can Still Overdraft
By 8.17.10
Just remember, even though starting this week banks can’t charge you overdrafts unless you opted into their overdraft program, they can still authorize overdrafted checks, ATM withdrawals, and automatic bill payments at their discretion and charge you a fee for it. [More]
Look Out For These Fees As Bank Legislation Goes Into Full Effect
By 8.16.10
This is the first business day financial institutions have been required to give existing checking account customers the choice to opt in to overdraft protection. Since banks are looking for ways to make up for the lost revenue by sticking it to customers in other ways, they’ve dreamed up some new ways to trick you out of your money. [More]
Branch Manager Quits Rather Than Trick Bank Customers Into Signing Up For Overdrafts
By 8.13.10
The bank branch manager who felt uncomfortable that his bank was making him choose between misleading customers into signing up for overdraft protection and keeping his job has decided to quit. [More]
When It Comes To Overdraft Opt-In, Chase Won't Take No For An Answer
By 8.6.10
According to Robert, Chase is taking the Steve Urkel approach to persuasion, asking him again and again if he would like to partake in its delicious overdraft protection, brushing off his continuous “no” answers as Steve always did to Laura in Family Matters. [More]
Get Customers To Sign Up For Overdraft Fees Or Get Fired
By 8.3.10
One of our readers is a bank teller branch manager and he feels queasy. His bank is making him trick customers into signing back up for overdraft fees, and if he doesn’t, he’ll get fired. [More]
Chase Now Has Human ATM Greeter Who Helpfully Sells Overdraft Protection
By 7.14.10
As the August 15th deadline for bank customers to opt in to overdraft protection on their existing accounts looms, banks are trying some innovative new tactics. Nicole tells Consumerist that she visited an ATM Chase branch on a Saturday morning to withdraw some cash, and encountered an employee stationed near the ATMs, asking customers whether they had “made a decision” about their “debit card overdraft coverage.” [More]
Is Chase's Overdraft Fee "Opt-In" Purposefully Confusing?
By 4.6.10
Reader Victor, a former WaMu customer who wasn’t exactly pleased to end up with Chase, thinks the bank’s Federal Reserve mandated on-line overdraft fee “opt-in” form is purposefully confusing. He’s sent a screenshot so you can take a look for yourself. [More]
Consent-Only Overdraft Protection: Maybe Not So Great
By 1.9.10
Starting on July 1st, the Federal Reserve has required banks to get consent from customers before enrolling them in overdraft protection programs so they can experience the excitement of cascading overdrafts. The problem is that consumers may be trading overdraft fees for insufficient funds fees and good old-fashioned bounced checks…and end up worse off in the long run. [More]
