Important Banking Changes (Rule: flat fee, credit, buying)

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Rules Change on July 1, 2010 for Overdraft charges and ATM Card Fees so be sure and watch your mailbox.
Your bank must give you some options regarding these charges. A statement from your bank should outline which plan you wish to choose – the standard overdraft service or the overdraft protection plan. In the past banks automatically enrolled you in their standard overdraft service for all types of transactions, under these new rules your bank must get your application to apply for these services to debit card transactions and ATM transactions before you can be charged a fee – however you must respond to the notice and opt in.
Standard services provided for your account to be covered for a flat fee of $20 to $30 each time you were overdrawn on your account – per transaction – credit debits and ATM fees; the overdraft protection offers a credit line or a link to your savings account to cover overdrafts. Banks will charge a fee each time you overdraft but generally this plan is less expensive than paying for a fee for each transaction on both.
If you are a regular customer and do not opt in (or agree) by August 15, 2010 your bank’s standard services will no longer apply to your everyday debit and ATM transactions. The transactions will be declined and not paid and you won’t be charged a fee.
If you are a new account customer after July 1, 2010 your bank cannot charge you the overdraft fee for debit and ATM transactions unless you opt in; if you open a new account before July 1, 2010 your bank will treat you as an existing account holder. The good news is that you now have a choice and if you change your mind you can always cancel. These rules do not affect checks and automatic bill payments. To read the new rule changes in greater detail please contact the Federal Reserve and get a free copy of ‘New Overdraft Rules for Debit and ATM Cards’.

If you don’t have a bank account – are you aware of prepaid cards?
Even if you don’t have a bank account you can still bank online – by paying your bills, saving some money, buying your groceries or shopping online; there are even some cards that will offer you a credit line. These prepaid cards can be made available through your employer’s payroll and are a great option for those consumers who still don’t trust financial institutions enough to open a checking or savings account. These prepaid cards have been competing with the bank’s traditional debit cards and have made an impact on the bottom line of a bank’s revenue. There have been some major card companies who have offered prepaid cards to customers for their teenagers use or to the babysitter for their use during activity outings with the children. Some of these prepaid cards are sold online or available at various retail stores.