Rules Changing On Banks’ Fees For Overdrafts

bank_americaThe good news for bank customers this summer is new federal rules should cut down on unexpected overdraft fees. The bad news is banks are starting to design new fees to help make up for the lucrative surcharges they might lose. Starting Thursday, Wells Fargo is ending its free checking account, although there are ways to avoid monthly charges. And Bank of America is testing an array of account options and fees that will be rolled out later this year.

Other banks, especially large and mid-sized ones, are expected to follow suit.

The new rules say customers have to give banks permission to cover everyday debit card purchases and ATM withdrawals if they don’t have enough money in their accounts. Banks charge overdraft fees that can reach $35 per transaction for this service. Full story in Star Ledger.

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3 COMMENTS

  1. I’d rather have free checking and pay a minimal overdraft fee.
    Right now I bank wth Wachovia/Wells Fargo and that’s what they do now. I try to be careful not to use my overdraft, though it does come in handy. But, I don’t want to have to pay for checking.

  2. classic case of too much government. they think theyre making it better for the consumer but in reality are making it worse. what do they think the banks are in this for fun?? theyll find another way to make money thats all. they should just leave the banks alone and let them do business.

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