Debit Card Overdraft Programs in Effect, Opt-In Rate Only 22 Percent

Debit Card Overdraft Programs in Effect, Opt-In Rate Only 22 PercentTwo months ago, new federal regulations went into effect demanding that banking institutions get permission directly from their customers before enrolling them in expensive debit card overdraft protection programs.  But on Tuesday, the Consumer Reports National Research Center reported that a recent poll revealed that only 22 percent of Americans have opted in for overdraft protection.

Consumers reportedly enjoy the option not to opt in to said programs due to a number of reasons, and with the new regulations in place, it allows them the affordability to take more responsibility for their transactions. 

The less costly options allow for more control by the consumer when it comes to overdrafts.  The wise consumer needs to shop around and get the latest procedures and apply the best they see for what fits their needs and lifestyle.

The new regulations come from a long history of abuse by banking institutions what would automatically put a consumer in the high cost bracket of options resulting in an exorbitant amount of fees often causing the accounts to close.  Consumers reported their grievances and the federal government finally went into action to remedy the problem.

It’s said the FDIC is also taking more action in regard to the overdraft programs to cover the paper check and electronic banking fees.  Consumers and watchdog groups are in league to urge the FDIC to move in their favor and get banks to make sure the consumer is aware of the more affordable options. 

Consumer Reports’ recent poll uncovered considerably relevant data that should provide more ammunition for consumers and federal regulatory bodies, such as the FDIC, to arrive at a battle plan where the safeguarding of our banking options is more transparent.


Log in