In the past, almost all banks would automatically enroll customers into a overdraft protection program. In straightforward terms, this means the safety allows you to draw on your bank list with a debit card or Atm withdrawal even if you do not have enough funds. The downside of doing this is that you will be expensed an first fee of to depending on your bank. Due to modern financial reform, there is a mandate for all banks to request that new and existing debit card buyer list holders consent to the overdraft protection program. If the list holders do not consent, then their debt card transaction or Atm withdrawal will be rejected & thus no fee will be charged. The reform doesn't apply to self-acting charges for overdrawn checks, pre-authorized electronic payments, & recurring debit card transactions.
Overdraft Protection is a Great and Profitable For the Banks
Should I Get Overdraft Protection?
There is a speculate why the banks are crowding your Atm screen, flooding your mailbox & even having the bank tellers remind you about enrolling in the overdraft protection program. It is very profitable for the banks, gross revenues for overdraft fees were almost .1 billion in 2009, almost duplicate the whole in 2000 (Moeb Research). The other point to keep in mind is that the larger banks fee first overdraft fees of yet the median purchase using a debt card is usual less than (Center For Responsible Lending). This a nice spread for the banks to earn income.
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