3-7-2014
http://www.huffingtonpost.com/2014/...-fee_n_4921148.html?ncid=txtlnkusaolp00000592
Bank Of America Wants People To Pay $5 For A Currently Free Service
According to the Federal Reserve's website, the 2010 rules targeting overdraft fees don't apply to transactions made by check or automatic bill-payment plans. In other words, if you've set up your bank account so that your phone bill is withdrawn from your account every month, then you could still incur an overdraft fee even under the new rules.
Unfortunately, it turns out a lot of people don't totally understand what overdraft protection is in the first place. According to a 2011 survey by the Center for Responsible Lending, nearly two-thirds of people who opted for overdraft protection under the new rules did so in order to avoid paying overdraft fees, when in fact charging overdraft fees is precisely what "overdraft protection" does.
This confusion is probably why some of the poorest Americans continue to shell out billions of dollars every year in overdraft fees, despite the Fed's attempt to prevent banks from overcharging their most vulnerable clients.
This is not the first time Bank of America has tried to launch an unusual fee plan. It tried charging debit-card customers $5 a month back in 2011, which pretty much blew up in the bank's face. Just months after announcing the change, Bank of America abandoned the plan amid widespread critical backlash.
http://www.huffingtonpost.com/2014/...-fee_n_4921148.html?ncid=txtlnkusaolp00000592
Bank Of America Wants People To Pay $5 For A Currently Free Service
According to the Federal Reserve's website, the 2010 rules targeting overdraft fees don't apply to transactions made by check or automatic bill-payment plans. In other words, if you've set up your bank account so that your phone bill is withdrawn from your account every month, then you could still incur an overdraft fee even under the new rules.
Unfortunately, it turns out a lot of people don't totally understand what overdraft protection is in the first place. According to a 2011 survey by the Center for Responsible Lending, nearly two-thirds of people who opted for overdraft protection under the new rules did so in order to avoid paying overdraft fees, when in fact charging overdraft fees is precisely what "overdraft protection" does.
This confusion is probably why some of the poorest Americans continue to shell out billions of dollars every year in overdraft fees, despite the Fed's attempt to prevent banks from overcharging their most vulnerable clients.
This is not the first time Bank of America has tried to launch an unusual fee plan. It tried charging debit-card customers $5 a month back in 2011, which pretty much blew up in the bank's face. Just months after announcing the change, Bank of America abandoned the plan amid widespread critical backlash.