New Overdraft rules went into effect on July 1, 2010 for new customers and August 15, 2010 for existing customers. All consumers should have received information from their bank of credit union giving them the ability to make decisions about overdrafts for transactions made with their debit or ATM cards.
Existing accounts. If you did not opt in (agree), your bank's standard overdraft practices won't apply to your everyday debit card and ATM transactions. These transactions typically will be declined when you don't have enough money in your account, but you will not be charged overdraft fees.
New accounts. If you opened a new account on or after July 1, 2010, your bank cannot charge you overdraft fees for everyday debit card and ATM transactions unless you opted in.
Whatever your decision, the new overdraft rules give you flexibility. If you opted in, you can cancel at any time. If you did not opt in, you can do so later.
The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. Your bank may still automatically enroll you in their standard overdraft practices for these types of transactions. If you do not want your bank's standard overdraft practices in these instances, talk to your bank; you may or may not have the option to cancel.
To learn more about the new consumer protections, go to
www.federalreserve.gov for a comprehensive breakdown of the Credit CARD Act of 2009.
www.pittsburgh.bbb.org/blog/