| In a February, 2009 article by the New York Times, | | | | added a credit line. If ever I spend more than I currently |
| they wrote about banks' urgent strategy to get their | | | | have in my checking account, it adds a balance to my |
| customers to opt back into their "overdraft protection | | | | line of credit. Yes, I do pay interest, but it's a fraction of |
| programs". This is because new credit card laws going | | | | the cost of a $20 overdraft fee. |
| into effect soon will make it a requirement for banks to | | | | This is just one example of how people short-change |
| obtain customers "buy in" to charge fees to cover their | | | | themselves unnecessarily. I see this again and again. It |
| over drafted checks. | | | | seems people think banks have their best interests at |
| Banks are resorting to cheap tactics like sending | | | | heart but they really don't. A little research would |
| letters with the following text "If you don't contact us, | | | | reveal this. However, so many people are uneducated |
| your everyday debit card transactions that overdraw | | | | about their credit and keep these painful results going. |
| your account will not be authorized after August 15, | | | | Getting educated about your credit is important but |
| 2010 -- even in an emergency". | | | | often overlooked. |
| Why would Banks be so enthusiastic to get customers | | | | 1. Check out your Expenses: Review see what you |
| back into these Programs? | | | | are spending your money on and identify what is going |
| It's a great question. The answer is; Banks make a lot | | | | to wasted expenses. |
| of income from this. In fact, in 2009, they received | | | | 2. Obtain Credit Report: Check out your credit report |
| Twenty Billion dollars (Billion!) from overdraft fees on | | | | AT LEAST once a year to make sure everything is |
| debit purchases and ATM transactions. | | | | correct and recognizable. Dispute fraudulent or items |
| Once again, this is another instance of big these large | | | | that are not recognized. |
| banks preying on those with bad credit or uneducated. | | | | 3. Get money savvy: Classes and courses for money |
| The whole reason this legislation was passed was to | | | | management can be found almost anywhere and are |
| eliminate this type of fraud. | | | | often free of charge. |
| I Don't Pay Overdraft Fees | | | | Whatever you end up deciding to do, please don't |
| I never paid an overdraft fee in as long as I've lived | | | | spend another dime dumping money down the drain |
| (and never plan to). When I opened an checking | | | | with the banks. |
| account, I went to a credit union (not a bank!) and | | | | |