You might have ended in withdrawing more than you hold from your debt card and faced the penalty of overdraft fees from your bank. But have you ever found that your bank has charged you more than the amount of overdraft? Overdraft charges put additional burden to your finances and can potentially increase your financial problems.
Why Overdraft Fees are Problematic?
Overdraft fees can prove to be extremely problematic for people, especially for financially troubled individuals. It is because these fees could be very costly.
Opt for Overdraft Fees
This is a wonderful opportunity given by the Federal Reserve Board to the customers to choose to get rid of them. This law went effective on July 1, 2010. According to these rules by the Federal Reserve Board, financial institutions cannot charge fees on their customers to pay off the overdraft on the ATMs and for the paying on the one time debit card transactions, unless the customers opt for their bank’s overdraft service for such types of transactions. In the light of this new law introduced by the Federal Reserve Board, customers don’t have to worry about paying additional overdraft charges on particular transactions they make.
Restrictions for Your Financial Institution
The choice is yours whether you choose to pay off overdraft fee or not.
Responsibility of Your Financial Institution
Your financial institution is responsible to send you a detailed written document. This document must be containing clear information about overdraft services with fees that are involved in the overdraft services and other choices made by you. This practice must be carried out by your financial institution in the event when you choose to pay off overdraft fees. This condition of notifying customer applies also on the customers who haven’t selected overdraft service.
Your Overdraft Protection Rights
Many individuals don’t want to accumulate fees for one-time debit card and ATM overdrafts. On the other hand, many people want to have overdraft services to get their essential bills like utilities, checks that are utilized to pay off rent, and telephone bills covered. According to the new rules, if you don’t for overdraft fees then your financial institution cannot discriminate you from other customers who have selected for overdraft fees. So make sure you are not being discriminated by your financial institution on any basis. It is because according to laws you still have rights to hold same account terms, features and conditions as with those customers that have selected the overdraft service. If you think that you are being discriminated then you can report it to the relevant authority.
