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Gaudreau News
Just Say No to Overdraft
My last blog post discussed the increasing trend by the banking industry to charge unsuspecting consumers huge overdraft charges at the point of sale when their account is overdrawn. An article appearing on MSN.com featured a consumer poll conducted by the Center for responsible Lending supports our belief that consumers want to remain in control of their spending by being notified when their accounts overdrawn rather than allowing the bank to cover the purchase and charge $39 per overdraft
In fact, according to the survey found:
- 82% of the 2,023 adults polled wanted the ability to choose the type of overdraft protection on their account.
- 72% to 74% would prefer their bank decline the transaction rather than charge a $39 overdraft fee.
Overdraft charges aren’t just for the young and poor at heart. One of the largest problems for our rapidly rising senior population is financial hardship. Whether it is due to illness, adjustment to retirement income, or after the loss of a spouse, seniors face tremendous pressure and difficulties when it comes to financial management and maintaining financial security after retirement. The numbers don’t lie. A staggering $1 billion of the total $27 billion in overdraft charges last year were paid by fixed- and low-income seniors. When you consider that a senior often must make the choice between affording home heating and their prescription drugs each month, the banking industry is certainly not doing our aging population any favors by charging these exorbitant fees.
What can we do to fight back?
- Take charge of your bank accounts. Contact your bank and ask for your account’s specifics with regard to overdraft fees, ATM fees, and ‘courtesy’ protections instituted by your bank.
- If the bank offers ‘courtesy’ overdraft protection, consider signing up for actual overdraft protection. This type of overdraft protection will link your checking account to another savings account or credit card that will cover the account in the event of overdrafts allowing you to avoid any fees associated with the protection. An overdraft protection program typically runs anywhere from $10 to $50 annually and is substantially less than the cost of just a few bounced checks
http://articles.moneycentral.msn.com/Banking/BetterBanking/DeclineMyDebitCardPlease.aspx?page=2