Remember the overdraft protection program Bank of America (and other banks) automatically enrolled their customers in (as a courtesy)? You know the one--you buy a $3.00 coffee with your debit card but don’t have enough in your account, the bank fronts you the money and then hits you with a $30 or $40 dollar overdraft fee. Well, that “service” didn’t go over so well with customers. Congress stepped in and instituted some changes (which take effect July 1) but not before banks made billions off the program. Now Bank of America says that as of June 19 (weeks before the federal regulations go into effect), they will no longer charge overdraft fees. So come June, if you try to buy a coffee and don’t have the money, you’ll be……..DECLINED (and it won’t cost you a thing).
David Lazarus, columnist at the Los Angeles Times
Rebecca Borne, policy counsel at the Washington D.C. office of The Center for Responsible Lending
Rep. Barney Frank (D-MA); Chair of the House Financial Services Committee
Rep. Carolyn Maloney (D-NY); She is author of the credit card reform bill signed by President Obama