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Total Views: 13Word Count: 496See All articles From Author Overdraft (NSF) fees are the bane of the existence of any banking customer. Even the most responsible among us have gotten dinged once or twice. And those dings can hurt, at $30 to $35 a pop for most major banks.
Banks would like to keep things status quo, of course. That is because they collectively earn over U.S. $30 billion per year in overdraft fees alone. Whereas bank fees were just a mere form of compensation for the banks when a customer overdrew an account in decades past Curtis Martin Big Tall Jersey , these days the fees have become a true profit center. Banks make a healthy portion of their income from these fees.
Overdraft fees are something that nobody likes to see on their monthly statement. Whether you check your statements online or receive them in paper form, you want to see interest earned and a detailed record of your payments and deposits: but not overdraft fee charges.
How Banks Charge Overdraft Fees
Banks are able to charge hefty overdraft fees because customers like us have agreed to paying them. That's right: most of us signed up for overdraft protection programs when applying for a new checking account - without even knowing it in most cases.
This is because, until July 1, 2010 Joe Namath Big Tall Jersey , banks were allowed to have their overdraft protection programs be opt-out, meaning that a new checking account applicant would have to actively tell the bank they did NOT want to enroll. If the customer didn't say just that, the bank would enroll them automatically.
Now, new Fed rules have made these programs opt-in-based. Still Trevon Wesco Jets Jersey , it is likely that most people will enroll in the programs because they do not understand the downside well enough to refuse.