Debit Card Overdraft Protection-Will You Opt-In?

[LIFERBABE]

I just received a mailing from Chase regarding the new law and letting me know that unless I opt in, they will start to deny everyday transactions when there are non sufficient funds.

The insert makes it sound advantageous to have this coverage on my card, but Im not seeing it. They say "you decide" and have come up with a fancy name for this coverage CHASE DEBIT CARD OVERDRAFT COVERAGE.

You want me to tell you to cover my $5 Footlong for a $35 Fee for up to 3 times a day? Oh, and even with the opt in, it is still at their discretion whether to authorize a purchase or not if the funds are not there. So they will let me buy the subway, but most likely not a television.

I really believed until recently that was the whole point of using a card linked to my account. If the money was not there, then the transaction would not be authorized. I found out while travelling, that several small purchases ($10 or less) were approved and I had to pay all those fees.

I know the moral of this story is to keep your account flush with cash and you wont have to deal with this, but I use my card account to control spending and budget.

I wont opt in, will you?

 

[SunnieRN]

Yes, I would opt in, however, I am changing banks as I got a much better deal!! So, I opted in and I am now "outta there".

 

[omghidanielle]

I already opted in, but I bank with a CU, and their debit card courtesy fee is $5, not $35. I'll probably never use it, but since it's so low, I like to have it in the event of an emergency

 

[Evi]

I would not opt in.. when I was younger I did opt in but that's also because I would occasionally overdraft. I'm older and wiser now I know not to spend what I do not have. I'd keep a small notebook and jot down everything that goes in and goes out of your account so that you do not overspend and save those $60 (5 per month right) and use them for something you really need.

 

[MyDizneyBoyz]

Our credit union let's us link a $200 line of credit to our checking accounts and if we happen to go over when using a debit card, it just pulls from the LOC with no extra fee. They charge interest on the money that gets transferred but it adds up to pennies a day and I always pay it back within a few days. So yes, I have $200 sitting there doing nothing until the rare times when it's needed but for the few pennies it has cost us it's worth it.

There's no way I'd pay a monthly fee for overdraft protection. I'd just watch my spending even more carefully.

So nope, I wouldn't opt in. I would EXPECT them to say "Sorry, not enough money here!" if I tried to buy something I couldn't afford. You know, just like the "Bank of Dad" did when we were little...

 

[palavra]

I heard a Clark Howard show on this very thing. Please don't opt in. With the new law, debit cards are supposed to work like they should. If the money is not there, you can't use the card. If you opt it, the bank can let you overdraw several items and then promptly charge you $35.00+ for each of those overdrawn items. Clark said that banks were purposely not updating balances to catch people this way.

 

[mster425]

I used to try to opt out of this and the bank wouldn't let me.

I'm SO GLAD they have to ask now! I don't have the cash flow issues I had in college when I wanted to opt out, but I will just on principle

 

[bettymae1121]

I have Chase too and have gotten those notices about opting in for overdraft protection. I don't make purchases with my debit card, I only use it for banking at the ATM, but even if I did I would not opt in. I want you to decline my card if I'm going to overdraw!!!! It means that either I forgot to enter something in to my ledger or there is some other problem with the account...either way it's something I need to know about so I can address it. Plus I'd rather not pay that $35 fee, thanks.

 

[DeniseinNS]

I have overdraft included in my monthly banking package so I don't have to pay any fees if I do use overdraft.

 

[Cheshire Figment]

Doing an opt-in is the worst possible scenario, especially once you read the fine print. Here is what Chase has to say.

• We will charge an insufficient funds/overdraft fee of $34 each time we pay an overdraft created by check, ACH, in-person withdrawal, debit card transaction or other electronic means. We will charge a returned item fee of $34 for any check or ACH transaction that is returned because your account had insufficient funds. The most you would pay is three fees per day for insufficient funds or returned items, no matter the number of transactions.
• Also, each time your account is overdrawn for 5 consecutive business days, we will charge you an additional $15.
• Once an overdraft has occurred, you are obligated to bring your account to a positive balance promptly.
• Whether your overdraft will be paid is at Chase’s discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have had excessive overdrafts.
• If you have sufficient funds available under Chase Overdraft Protection, funds will automatically be transferred from your Chase savings account, credit card or home equity line of credit (except Texas) to cover your overdraft purchases. Chase Overdraft Protection may be subject to a credit approval. Fees may apply, including a $10 transfer fee.
• Whether you have Chase Debit Card Overdraft Coverage on your checking account will not affect how we treat your recurring debit card transactions (such as a gym membership). In particular, we may, at our discretion, authorize and pay a recurring debit card transaction that causes an overdraft and charge an insufficient funds/overdraft fee even if you do not maintain Chase Debit Card Overdraft Coverage on your account.

This means they can charge you $102 per day if you do not have another account they can draw from. If there is another account then they will only charge $10 plus other unstated fees.

 

[mjkacmom]

I used to try to opt out of this and the bank wouldn't let me.

I'm SO GLAD they have to ask now! I don't have the cash flow issues I had in college when I wanted to opt out, but I will just on principle

Same here! I still remember the one time DH took money out of the account (I pay the bills and keep track), and the ATM gave him the money, even though it wasn't in the account, and we got hit with fees. I'd much rather be denied!

 

[dawson5]

We pay $20/year for OD protection. If you are underfunded, they transfer $100 to your account. If you do not pay this back before the due date, I think they charge normal CC rates (I would think around 18-20%). We don't get the $102/day charge. For us it's a no-brainer, especially with hubby's work. Sometimes he needs something and if we don't have the funds to cover, he can still get it and get a check from work to pay for the purchase. We have Bank of America though, we were with Standard Federal for years, they were bought out by LaSalle, which was bought out by BoA.

 

[Swimalie]

I heard a Clark Howard show on this very thing. Please don't opt in. With the new law, debit cards are supposed to work like they should. If the money is not there, you can't use the card. If you opt it, the bank can let you overdraw several items and then promptly charge you $35.00+ for each of those overdrawn items. Clark said that banks were purposely not updating balances to catch people this way.

I agree with Clark. If the money isn't there, it shouldn't allow you to use the card.

 

[mjkacmom]

Wow, just got my THIRD offer today! I feel sorry for the people who don't read what it means, and think this is actually a benefit!

 

[IWannaBeAPrincess]

We opted out. I think this is rediculous. I don't want an overdraft fee, I'd rather it deny the purchase if it came to that.

 

[LisaNJ25]

I just went and opt out with my chase Disney visa debit. I never understood why debit cards just let everything go though.

I did make a mistake with my chase card last week and went negative(not my main account and don't keep much it there). They should of just declined it. It happened in the am.. I went right to the bank and added more cash an I wasnt charged any fees.

 

[bumbershoot]

... but even if I did I would not opt in. I want you to decline my card if I'm going to overdraw!!!! It means that either I forgot to enter something in to my ledger or there is some other problem with the account...either way it's something I need to know about so I can address it. Plus I'd rather not pay that $35 fee, thanks.

I feel the same way.


However, I believe even opting out doesn't protect you totally, b/c they might still cover recurring debits like gym memberships...

 

[LIFERBABE]

Wow, just got my THIRD offer today! I feel sorry for the people who don't read what it means, and think this is actually a benefit!

1 reason I started this thread is that the way Chase has worded it, they have put lipstick on the pig and made it seem like the government took away a benefit and now they are giving us all the option to get it back


I do have other accounts that are linked, OD protection built in etc. but I was using my Debit card as a control for everyday purchases thinking it would deny me if I did not have the funds for the little extras I always pick up. I learned the hard way on a Disney trip, (used my debit for tips) that they would allow small purchases, but when I went to check out they denied it and that's when I learned I was overdrawn. I had checked my balance and called the credit union and was told there was more than there was. I always travel with more than 1 card and checks so no issue there.

 

[delmar411]

I'm opting out. I couldn't figure out what it even was before, but I'm very glad it will stop them from allowing 'overdrafts' on the acct. I also thought that was the point of a debit card. Once you're out of money , you're out of money.

 

[eliza61]

Opt out!! folks, the purpose of a debit card is to take the money out of your account. It is not meant to be used as a credit card.
The banks try to sell it like they are doing you a favor by saving you "embarrassment". they are not doing any favors at all.