After all the chaos that banks have began concerning overdraft surcharges for ATM and debit card transactions, the Fed has put a new regulation in position that requires banks to get their customers’ permission before they are able to charge fees due to an overdraft. The regulation is to go into effect on July 1st.
The regulation came after purchaser groups kept getting complaints from clientele and members of Congress even said that the overdraft fees were unmerited.
Many people think that if their debit card is cleared for the charges, then there isn’t a difficulty with the amount of money in the bank.
I have always found it odd that overdraft surcharges always come from the nominal of debits and it is often something like a cup of coffee. I can only remember getting an overdraft charge on one occasion and it was for a beverage from a convenience store. The only trouble I had was the bank, which I had just stopped by and checked my balance, said I had more than $25 in my account.
It turns out some banks contribute in a strange accounting practice that allows for small dealings to go through while deposits get postponed.
I am really happy that the Fed got concerned and decided to put this regulation into effect. I wish it would have been put into place a tad earlier than July 1st of next year, but I believe better late than never. Now if only a few people were able to get back some of the overdraft surcharges that have been composed over the years for the “strange” accounting rules I was talking about before.