Debit cards, overdraft fees and involuntary loans

The Center For Responsible Lending, a nonprofit and non-partisan research and policy organization focused on fighting abusive lending practices, is warning people to beware of recent changes banks have made to their debit card policies.

Previously, if you attempted a transaction with your debit card and you did not have enough money in your account to cover the transaction, then the transaction would be denied.

Recently, however, banks have changed the default option to “overdraft protection.” That means that if you don’t have enough money in your checking or savings account to cover the transaction, they will allow the transaction to go through and you will be charged an overdraft fee. Sometimes multiple fees.

According to the CRL, these fees average around $34, while the average shortfall that triggers the overdraft protection is $17. Not a great lending rate. Especially given that most people replenish their accounts right away after realizing their mistake.

Banks claim that they implemented the policy change for customer convenience. However, given the recent trend by banks to come up with new and creative ways to charge fees, this “overdraft protection” policy change smacks of a cynical effort to increase their profit margin on their customers. And this is the last thing most people need during tough economic times.

If you’re a New York resident or business facing financial troubles and you need help working out your loan situation or are considering filing for bankruptcy in New York, please feel free to contact me for a free initial consultation. I’ll answer all of your questions and help figure out the best options and strategy for you to move forward with your financial life.

Go to Bankruptcy Lawyer Brooklyn NY to learn more about Rosenberg Musso & Weiner LLP and/or to set up a free consultation.

Bankruptcy, Brooklyn Bankruptcy, Chapter 13, Chapter 7, Debit cards, New York Bankruptcy, New York Bankruptcy Lawyer, Overdraft fees, Scams

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

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