Was it a coincidence that the same day the first of the new credit card regulations went into effect, the N.Y. Times lead editorial called out the banks for charging high overdraft fees, one of the same issues addressed in the new credit card legislation? (For those unfamiliar with the Credit Card Act here's a guide.) Probably not. This issue has been banging around for more than two years. Several sources have published horror stories in recent weeks about banks permiting customers to compete transactions with debit cards and then imposing overdraft fees that are grossly disproportionate to the overage. It is bad enough to be charged a $25 fee for going over ones credit limit when making a $200 credit card purchase. But a $35 fee for a $2 cup of coffee bought with a debit card somehow seems even more offensive. The Times described a college student who bought $16.55 in school supplies and coffee through several separate debit card purchases and was charged over $200 in fees. Another report described a $35 overdraft fee when a store made an 8 cent adjustment to a prior charge after an account had been closed. The new credit card act requires that cardholders opt in to any system paying over the limit charges while imposing a fee and limits over-the-limit fees to one per billing cycle. Consumer groups have argued that the same opt-in procedures should be required for both credit and debit. The N.Y. Times argues that banks should be required to develop the technology to allow consumers to choose whether to overdraft their accounts on a purchase by purchase basis.
17 comments:
Charging high overdraft fees on credit card or debit card is not acceptable. It must be protested. Anyway its a good article. The information are very useful.
Steve, as you know, I've been complaining about the debit card fees for some time now. The draft regulations seem to be stalled with so much else on the forefront.
Yes , you are right. High charges of overdraft fees is not acceptable for any people. So your information for alert is very useful. thanks!
The problem with the rate of debit card overdraft can occur when the consumer attempts to make a purchase using a debit card for more than what is in your checking account.
Bank officials said that effective this summer, customers who try to make purchases with their debit cards without plenty money in their checking accounts will simply be diminish.
Most banks will offer a line of credit or link to your savings account to cover the transactions when you overdraft your account.
Overdraft may debit card problem occurs when you draw the consumer attempts to make a purchase a debit card to get more scrutiny in his or her account.
Some times many banking services and companies charged on over draft fees, but it is not applicable to rate high charges i am agree with you about this point.
I think that overdraft fees are ridiculious and should be done away with.
Overdraft on debit cards is rediculous........on great article and alot of info!
debit card fees NO!.....Good article lots of information, thanks
Well that just stinks what can happen to your card when you are not even aware of it.
I think that all debit cards should not be able to charge if there are not funds enough to cover those charges. My bank has the option of a customer choosing to allow that debit card to be overcharged. I chose not to let that happen. But I also think it is your responsibility to know how much you do have in that account to spend. But everyone makes mistakes.
The more I read on this subject it sounds to me we should all go back to useing good old cold cash!
Overdraft fees should not even be allowed if there is no money or not enough the card should not go through the system.
There should be no overdraft on debit cards, if there is not enough money they should not be accepted.
Overdraft fees on vredit cards .......if there is no funds on card they should not go threw.
Post a Comment