The End of Overdarft Fees: The most important thing that happened yesterday

[Unknown User]

Posted: 11/13/09 at 11:35am

"Flexing newfound muscle as consumer protector, the Federal Reserve on Thursday banned ATM and debit card overdraft fees unless customers have opted to pay to ensure that balance-busting transactions go through."

Your bank will no longer be able to charge you a $25 overdraft fee if you put a $3 coffee on your debit card. They will, however, be declining your card if there is not enough money in your account to pay for your debit card purchases.

I would think for most consumers, this would be the most significant piece of legislation in the last decade or so. I was surprised not to hear so much about it.

Fed Reserve bans most bank overdraft fees Updated On: 11/13/09 at 11:35 AM

[Phyllis Rogers Stone]

Posted: 11/13/09 at 11:38am

I would much rather deal with the embarrassment of a transaction not going through than getting trapped in overdraft hell.

[Unknown User]

Posted: 11/13/09 at 12:17pm

AMEN! My direct deposit now is much more reliable, but in previous jobs (and with previous banks) it seemed like I was always getting dinged for 2 or 3 transactions that cleared before the deposit posted.

[Eris0303]

Posted: 11/13/09 at 12:19pm

I would much rather deal with the embarrassment of a transaction not going through than getting trapped in overdraft hell.

Same here. It doesn't happen so much now but when I was in college and making $5.55/hr it would happen occasionally. Between school books, gas, and other stuff it was hard to maintain a balance.

[Magdalene]

Posted: 11/13/09 at 6:39pm

As I put in the other post, some of the bigger banks will give customers the option of continuing the overdraft protection. I'm all for that!

[orangeskittles]

Posted: 11/13/09 at 6:52pm

$37 each. One time I had 4 charges come through after the initial overdraft (my paycheck took 4 f***ing days to clear) and owed $148 in overdraft fees. I threw a fit and they brought it down to $74. Still $74 more than I should have paid.

Every time I pass the stadium built by and named after my bank, I realize they paid for it with my overdraft fees and my blood boils.

[adamgreer]

Posted: 11/13/09 at 8:19pm

My bank, Wachovia, makes withdrawls before deposits. I found this out the hard way when I was signed up for automatic bill pay. At the end of the month, it would pay all of my bills before the direct deposit from my paycheck would go through. Lo and behold, the account drastically overdrew and I got hit with 5 separate $39 fees. I had to call them and explain to 4 different people the problem, and then threaten to close my account before they waived the fees as a "one-time courtesy."

[BobbyBubby]

Posted: 11/13/09 at 8:45pm

Oh thank God! This will totally save my ass more than once! I'm horrible about overdrafting (mostly cause I'm really bad about depositing).

[PalJoey]

Posted: 11/13/09 at 11:15pm

That's "darft."

[Craww]

Posted: 11/13/09 at 11:17pm

Such a relief. It happens to my mom all the time.

It only happened to me once, and I was out just under $100. I totally cried.

[iflitifloat]

Posted: 11/14/09 at 1:29pm

I have "enjoyed" more than a few $40 cups of coffee over the years...
This IS good news.

[withoutlovewithoutU]

Posted: 11/14/09 at 6:02pm

Awesome! I also have enjoyed way too many $40 cups of coffee! And if you buy anything locally in my town it seems to take them forever to charge your account so it is tough to keep track!
This has pretty much made my day!

[Magdalene]

Posted: 11/14/09 at 11:05pm

I guess I'm in the minority in that I want to opt in to the overdraft protection.

[bdwaygirl]

Posted: 11/15/09 at 11:50am

Doesn't anyone pay with cash for the little stuff anymore?

[adamgreer]

Posted: 11/15/09 at 1:37pm

I haven't carried cash in years...if there is something I need to pay cash for, I go to an ATM immediately before.