A couple months ago after the new bank overdraft fee laws were passed, I asked the teller if I could turn off my overdraft protection. I said that if I didn’t have money in my account, I just wanted them to decline the purchase instead of charging me $35 when I didn’t have enough in my account.
She looked at me like I was an idiot and told me that wasn’t allowed. It is ironic that the banks call this a “service” that they offer. But anyway, the good news is that I just got an email from that same bank asking me to opt in, or out of overdraft protection. So, since the law has passed I think I understand that all banks have to make overdraft protection optional.
Since I have a couple debit cards in my wallet, I am definitely opting out of this “optional” service that they offer. You may want to check with your bank to opt out as well.
Have you opted out? Why or why not?
{ 4 comments… read them below or add one }
Interesting “service”. I haven’t received anything from my bank yet, but I never use overdraft, I just put an extra $500 or $1,000 in my checking account and don’t put it in my register so I don’t spend it. I know, the money is wasted in one sense, but I prefer being in control of my own overdraft.
I opted out for the same reasons. It’s made me pay closer attention to the checkbook.
I got notices both in the mail and online.
I was wondering if you would have something up about this alleged “service” that financial institutions offer. I’ve also opted out of overdraft protection on all of my accounts. I would much rather have my card declined than be charged the outrageous $35 fee per transaction charged over the limit.
The worse part with this overdraft “service” is if you do have it enabled and don’t realize that you’re over your limit you’ll probably end up making several transactions, all of which will incur a $35 fee, so the next time you check your account you find that you have $70-100+ in fees on your account that you hadn’t planned because you bought a pack of gum at the gas station before you picked up the diapers.
I say good riddance to overdraft protection and will never use it again.