Overdraft Protection Expires: No More Overdraft Fees Without Opting-In
Scarlett Garvan on August 14, 2010 in Education News No Comments » 
Unless a consumer chooses to opt-in for overdraft protection, their ATM and debit purchases will be declined if an account has insufficient funds. Prior to Sunday, banks could automatically enroll their customers in the service, which covers the point-of-sale transaction but can result in steep penalties. Shoppers at the counter might turn red with embarrassment when their purchase is refused, but the alternative is for their account to go further into the red — with fees up to $35 for each swipe of the card.
When added to the cost of a 99-cent taco, $35.99 doesn’t exactly fit on the value menu. Just last week, a federal judge accused Wells Fargo of “profiteering” by employing overdraft policies that led customers to pay multiple fees. The bank was ordered to return $203 million to its customers.
