New Rules Coming for Bank Overdraft Fees

If you have a checking account, then chances are that at some point you have drawn over the balance of your account. And if you have, then you probably paid a bank overdraft protection fee. In recent years, this has been a very profitable way for big banks to make their money. Soon, the rules will change regarding these overdraft protection fees.

With the signing of the Credit Card Law of 2009, President Barack Obama has made it so that banks cannot automatically provide an overdraft protection program. Beginning this year, banks will have to inform their customers first, and give them a chance to accept the protection, or opt-out of it altogether.

If you choose to opt-out of the overdraft protection program, spending more than you have in your account will no longer be possible. Any purchases not covered by your funds will automatically be denied. You can, however, opt back into the program at any time you choose. At this point, your bank will look to charge you an overdraft protection fee.

For new accounts, these rules will go into effect as of July 1, 2010. They will begin to apply to existing accounts as of August 1, 2010. But in the meantime, banks continue to charge these unfair bank overdraft fees. If you have been a victim of these charges, you may have a case for legal action.

To learn more about unfair bank overdraft fees, visit our article library. 

The attorneys at Phillips & Garcia will fight for your rights in your bank overdraft fee class action lawsuit. We are committed to protecting your best interests and helping you collect the damages you need and deserve to move on with your life. If you have been treated unfairly or been a victim of unfair bank overdraft fees, contact Phillips & Garcia today to schedule your FREE legal consultation - (877) 892-5620.