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BBB: Overdraft opt-in,consumers have

decisions to make
1:\)
Ridgela~, Miss., - This Business Bureau (BBB) be declined.
summer, a host of new rules Serving Mississippi. - Customers should also know
kick in regarding the way For example, Moak says, a that banks are alfowed to
. banks charge overdraft fees to customer who meticulously charge you as many times per
their customers. As two critical keeps his or her checkbook day as their stated policy
deadlines approach, many and never overdraws would allows, potentially costing
consumers are receiving probably not need the much more than you paid for
letters from their banks asking service. Same goes for the product or service. "That
themtoeither"opt-in" or "opt- customers who have some dollar pack of chewing gum
out" of overdraft protection other way to cover over- could end up costing you $35
services (and the accom- drafts, such as a linked bank or more," Moak noted.
panying fees) when they accountorlineofcredit. "But Whatever your choice,
overdraw their accounts. customers who regularly run banks will automatically
The new regulations are the into problems balancing their consider you to have "opted
result of comprehensive checkbook, or those who live out" if you do not return the
banking reform measures, and on a tight margin, should form with your choice by the
are primarily aimed at curbing consider whether they would deadline.
overdraft fees. Banks are now benefit from the service." Here are a few suggestions
required to let their customers It is important to note that for avoiding overdrafts:
decidewhethertheywanttheir the new rules only apply to Track your balances daily.
bank to "cover" ATM and one- "one-time" debit card and Many banks have websites that
time debit card transactions ATM transactions, and do allow you to see what is going
when there is not enough not apply to checks, ACH through the account, minute­
money in the account. Such (Automated ClearingHouse) by-minute.
service can help you avoid the transactions, such as sche- Consider signing up for "low­
potential problems caused by duled payments using the balance" alerts. These services
bouncing a check, but can also bank's bill-payer service, or can let you know about a
be costly as many banks charge recurring debit card potential problem.
fees of $30 or more for each transactions. Keep a "cushion" of cash in
transaction.' A key factor in the decision, your account, for times when
.' ....... The new rules require banks Moak explains, is whether you need it, or when you make
'.~i:tO. optam'. explicit permissiolJ,.. if
lJ .w.ant to d.. .eal with the"," a mist.ale.'e.
~otftqfll[lge'it!~~'Si1if~"~_IP"18 if'en8~ y~~cetmtv(!e a .
provide this service. Over the business which is the subject savings account or line of
past several weeks, consumers of the bounced transaction. credit.
have been sent questionnaires Fees vary, and many The BBB urges consumers to
from their banks, asking their businesses charge up the contact their banks for more
preference on whether they maximum allowed by law. information about their choice.
want the bank to either cover Others may. allow you a' For more on the new law, the
their overdrafts (and incurring second chance ifyou contact American Bankers Associ­
the bank's stated fees), or them to plead your case. If ation has produced an
waive the service and possibly you have opted out, and try informative fact sheet on its
have the transactions bounce. to use .your debit card at a website at hup:/lbit.ly/
(If a consumer "opts out", the store or ATM, it will likely 9qkV AZ.
bank may cover the transaction
anyway, but may no longer
charge for it.) The deadline
for banks to implement the
opt-in process for new
customers was July 1, and
Aug. 15 for existing
customers.
"It is important! for

consumers to weigh their

options, because a lot of

consumers could be pos­

itively or negatively affected

by their decisions," said Bill

Moak, President of the Better