Patt Morrison for July 6, 2010

Almost over overdrafts

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Kristian Dowling/Getty Images

New rules apply to banks for charging overdraft fees

It looks like it’s a win for the people, kind of. New rules have been installed to control the fees that banks issue associated with overdrafts. But the downside is that the rules only apply to ATM withdrawals and one-time-only debit card purchases, not including monthly deductions for subscriptions or automatic payments. Overdrafts are a huge source of revenue for banks, reason enough to offer their customers “free” checking accounts, just in case they overdraft their account. Consumer advocates say the new rules aren't enough - some are even calling for boycotts to paying these fees. So even though it’s not the best-case scenario, is this a step in the right direction?

Guest:

Kathleen Day, spokesperson, Center for Responsible Lending


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