| The Federal Reserve finally stated new rules that will | | | | the details of what is required. However, some |
| prohibit banks from charging overdraft fees at ATMs | | | | consumers do want overdraft protection services to |
| and one-time debit card transactions without the | | | | make sure that some time-sensitive payments like rent |
| consent of customers. | | | | and bills are covered, as long as they know the |
| The new rules, which will be effective July 1, 2010, | | | | charges. |
| appear in response to growing consumer | | | | The Fed's rules appear mostly in line with the new |
| dissatisfaction with the overdraft fee charges that | | | | trend that some of the banks have already begun |
| they often do not realize until they receive their | | | | moving toward. In September, Wells Fargo & |
| monthly statement. Banks previously added overdraft | | | | Company (WFC - Analyst Report) said that it will not |
| fee protection automatically to most accounts | | | | charge fees from customers if they overdraw their |
| regardless of the amount that was withdrawn. | | | | accounts by $5 or less. Following that, in October, Bank |
| According to the new regulations, consumers must be | | | | of America Corporation (BAC - Analyst Report) |
| given a notice explaining a financial institution's | | | | announced that it will eliminate fees if a customer's |
| overdraft services, including an explanation of the fees | | | | account is overdrawn by less than $10 in a single day. |
| associated with the services. | | | | Congress wants stricter rules going forward. Very |
| The Federal Reserve took this decision primarily based | | | | soon, the Senate Banking Committee will discuss |
| on its investigation which showed that banking | | | | legislation that would go further than the current |
| customers only want overdraft services if they know | | | | overdraft fees rules. We will keep an eye on this. |