Really? No More Bank Overdraft Fees and Over the Limit Credit Card Fees?

In these troubled times many people are facing suchaccount. The result of this being high overdraft and
serious financial difficulties that the government hasover the limit fees.
finally stepped in to help out. It i time to becomeImagine if you were charged $35 per incident and
educated so that you are a forewarned andwithout realizing it you made four different purchases
forearmed consumer.that added up to $20 over the amount of money you
Before I go into opt-in overdraft and over the limitactually had in your checking account. Your overdraft
coverage regarding banking and credit cards, it is afees would add up to $140! This type of thing happens
good idea to get a clear understanding of the newall the time. That is why it is an extremely profitable
laws that will be enforced as of August 15, 2010.way for banks to obtain your money. Even going over
During this time of a recession in which everyonejust a few dollars can cost you $35.00 in overdraft
around the world is having difficulties with their financescharges.
most people are looking for ways that we can saveWhat the government has done is plugged this
money. One of the ways we can save money is byloophole and no longer are banks allowed to let you
paying attention to what we truly can't afford. The factspend more money than you have in your checking
is having overdraft protection and being able to goaccount when you use your debit or ATM card.
over our limit on credit cards has made us lazy andNow, the banks have to sway or scare you into
kept us in debt.opting-in to overdraft protection regarding ATM and
This laziness has generated an estimated amount ofDebit card transactions. If you do not opt-in you won't
$20 billion from the overdraft fees on debit cardaccidentally spend more money than you have. That
purchases and ATM transactions in 2009. In addition todoesn't sound so bad now does it? No more overdraft
overdraft fees that sometimes can be as much ascharges to eat up your monthly income.
$35 per charge, banks have generated an additionalThe banks can on the other hand continue to allow
$12 billion by covering checks and recurring bills.you to spend more than you have if you use a check
Under the new law banks will no longer be able toor allow your bills to be paid through automatic
allow their customers to spend more money than theywithdrawals from your checking account.
have in their checking account using their ATM or debitSo it's time to pay attention. Know your spending limits.
cards. For many people this brings a huge sigh of relief.Keep enough cash on hand to fill your gas tank or
While it may be a little bit embarrassing to have yourunexpected expenses. This is a good thing for us. But
card rejected at the grocery store or perhaps abeware of the persuasive tactics soon to come
restaurant etc., is well worth it when you consider thebecause banks and credit card companies are not
financial cost of going over your credit card limit orgoing to give up their $20 billion dollar profits that easily.
spending more than you have in your checking