Fed's new regulations on bank overdraft charges

Sunday, June 20, 2010

A summary of the Federal Reserve's new regulations on bank overdraft charges:

-- The rules apply to debit card transactions and ATM withdrawals. They do not apply to checks or recurring payments, such as automatic bill pay.

-- Consumers must opt in to an overdraft program for a bank to charge any fees.

-- Consumers who opt in can drop the program at anytime.

-- Banks must comply with the new overdraft rules for all new accounts opened after July 1.

-- For existing accounts, banks must comply with the overdraft rules by Aug. 15.

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