Via:wcpo.com
The biggest provisions in the new Credit Card Law are finally taking effect on February 22.
The law has many consumer protections, but the biggest of all has nothing to do with credit cards; it has to do with those frustrating overdraft fees.
One Small Mistake Leads to Multiple Overdrafts
That’s a good thing, because Karyn Jones, like so many other banking customers, was recently hit with a string of overdraft charges.
What happened? She says she made a few debit card transactions before a big check from her husband deposited and cleared. The result: Four overdraft fees in a row.
Karyn told me “I think overall it was $31 in charges that I made. And each one was then hit with an overdraft fee of $36.”
Karyn says the worst part was that the bank took her biggest debit first. “They took the biggest check out. That caused $144 in bank fees!”
The good news is that her local branch manager agreed to reverse the overdraft fees. But automatic overdrafts like Karyn’s are about the become a thing of the past.
Say Goodbye to Overdraft Fees
Under the new CARD law:
You will have to “opt in” for automatic overdraft protection.
Instead of charging a $25 to $39 overdraft charge, your debit card will now be rejected if your account is too low.
Consumer advocates say that will save bank customers millions of dollars in just the first month.
