Debit Card Overdraft Protection-Will You Opt-In?

[mom of princessx2]

I don't see what the big deal is. I opted in but my credit union takes from my savings first, free of charge, my line of credit next, at a cost of pennies in interest then it would go to the charged debit card protection. I probably shouldn't have a debit card if it ever gets to that point.

Of course having worked in banking for about 20 years prior to staying home with my kids I have become a bit anal about my accounts and tend to check them daily.

 

[3_disprincesses]

It has made me mad for years that banks do this and people have no idea at the time they were going to overdraw their acct and end up with a fee!

The majority of people that overdraw their accounts do so because they do not care to keep up with how much money they have by recording their transactions and balancing a register! It is not the banks fault...and most people that overdraw their accounts EXPECT the bank to cover their transactions even though they don't have money. I hate that the government has to step in to "protect" people that are too lazy to take the time to be responsible for their actions! I find that customers that are "Opting Out" are people that would probably never have an overdraft anyway...

But please remember to clarify if you need to "OptIn" with your institution in order for your overdraft protection, whether it's LOC or an attached savings account, to kick in! Don't "OptOut" assuming it will be taken care of.

 

[SandrA9810]

I had too many problems with bank on this. When the original account was opened, there was no overdraft protection. If there was not enough available, then it was denied. If a transaction was approved, but not withdrawn, it wouldn't be available for other purchases. Over the course of the years and "new checking account" options, they automatically changed it to the newest one. So instead of the simple free e-checking, it went to cash back checking.

The biggest culprit to this is paying at the pump for gas. Always prepay inside with your card, and that full amount will be deducted. Like at Race Trac, if you prepaid debate, you got cash change if it didn't take all of it. When you pay at the pump with debit, it only pings for a 1$ and that night it comes out, with credit it only pings for a 1$ but can take like 3 days before it's withdrawn.

Anycase, after having the bank refund fees twice. I told them I wanted it off my account and the account to go back to the way it was when it was opened. I spent so much time on the phone with a manager, and then I had to write a letter telling them exactly what I wanted done and faxed. And all this other stuff.

I'm glad it's much easier now for other people to get this option off of their account and not have to deal with what I went through. And before this law came into play, I talked to several other banks about being able to opt out of this option, and they wouldn't allow it. So even though my bank location is no where near where I live, it still made better sense to stay with them.

And with two card, two people, one bank account. It wasn't always easy to keep up what went out. Because there where times when I'd buy something for a few bucks, and then Kari would buy something for a few bucks, all of sudden there was twice as much deducted because we didn't tell each other we were buying something. Mostly happened at work when we were buying lunches.


My sister thinks it's a free loan from the bank to do this. She's told me on more than one occasion that they only charge a fee per day rather than per transaction. So she racks up a lot of transactions in one day, so they take it out on payday. Like getting gas, food, or other things that probably should've been planned in a budget.

 

[Disney-Kim]

We opted in but also linked our savings to our checking as overdraft protection. That way just in case we make a mistake we are covered and they only charge a fee to transfer the $$ from savings....which is $10 I think.

besides if you never overdraft your account...it doesn't really matter...does it????

 

[LuLuO]

We opted in. We are never that low in our checking account to worry about overdraft charges, but if for some reason we would make a mistake in our accounting or would have some sort of emergency then paying the fee would be fine.

 

[antmaril]

One of the financial experts (I can't remember her name - sorry) on "The Today Show" advised people NOT to opt in. According to her, opting in opens the door for all kinds of fees.

 

[Shanan]

We have opted out also.

 

[C.Ann]

Count me among those who don't need the overdraft protection on any of my accounts - at several different banks.. I keep very close track of my money and my accounts and have never even come close to spending money that I "don't have"..

 

[mster425]

Someone posted that the banks "never had the option" of not paying the customer's overdrafts- before 2000 or so, if there was not money in my checking account, my card would be declined, so obviously they DID have the option. They just realized how lucrative it would be to cover the overdrafts without informing the consumer they were over, like before, and charge a fee. It's only been in the past 10 years that they've automatically opted everyone in to make $$.

I would never overdraft now, but I clearly remember the first time I found out the policy had changed- I used my card to get an iced tea saying, "I'm not sure I have enough in my account, we'll have to try it," then finding out later it was a $35 iced tea and being shocked the bank could just lend me money without telling me...( I was 18, no flames RE irresponsibility please!)

 

[mjkacmom]

I don't understand why, in this day and age of internet banking, anyone should need overdraft protection. I can look at my account 24 hours a day and see how much money is in there. I don't write checks anymore so there's nothing mysterious ever floating around out there that might clear unexpectedly.

I've never overdrawn because I always know exactly how much I have in the bank.

Maybe I'm just kind of Type A though.

Do you have children? I pay all of my bills online, but my kids are in many activities that require me to pay with checks, and many are cashed a month or two later. Most of their activities can't even be payed with a credit or debit card.

 

[Jex]

I dont understand how the banks are the bad guy here. If you don't overspend you wouldn't get a fee no matter the policy. If the government wants to help people be smart about fee's they should shut down "check loans" places.

 

[disney1990]

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?

Nope, I would never Opt In. I don't let our accounts get that close to empty.

Do you have children? I pay all of my bills online, but my kids are in many activities that require me to pay with checks, and many are cashed a month or two later. Most of their activities can't even be payed with a credit or debit card.

That can be solved. When you write a check, minus it out of your checkbook. Then you always know how much is in your account. Don't rely on what the bank balance says it is, because you know there are outstanding checks that still need to clear your account.

 

[aceys_h0ney]

As someone who has paid $36 for a 20oz Coca Cola before I will not be opting in. If I made a mistake and don't have the money there I don't want to be charged to be able to purchase the item. I read on one article that a bank claimed opting in would save you the embarrassment of not having the money to pay. I can tell you I would rather see strangers have to watch me put an item back then pay an additional $35 for a drink. I have had problems with my banks processing all my debits before my credits and overdrawing me as well, I believe this new law changes some of those practices as well.

 

[snowy76]

I don't understand why, in this day and age of internet banking, anyone should need overdraft protection. I can look at my account 24 hours a day and see how much money is in there. I don't write checks anymore so there's nothing mysterious ever floating around out there that might clear unexpectedly.

I've never overdrawn because I always know exactly how much I have in the bank.

Maybe I'm just kind of Type A though.

I'm pretty Type A myself, but when DH and I have the same access to the same account throughout the day, we're not calling each other every time we swipe the check card to stay updated. Not all swipes automatically are reflected in the available balance, either - I've noticed it especially with gas stations. I can recall one situation where DH filled up on gas ($75, when gas was way up to $4) and forgot to write the amount in the checkbook until the next day; the hold on the account didn't happen for three more days!

 

[pandora174]

I opted out for BOA. I was told that if a check or automatic withdrawal comes in they will still pay (but it may depend on the check amount - couldn't get them to explain that) & I will be charged an overdraft fee. As to automatic withdrawal I only have set up Sunpass for tolls & my DS's college fund, so I'm not worried.

They were a little pushy but I said no thanks repeatedly. From now on I plan to check my account online regularly. But as a previous poster said last month DH filled up his car with gas & ordered some car parts online & "forgot" to tell me & I made all the house/utlitity payments for the month Didn't go through until 3 days later. So $35 x3 = $105 ! DH was mortified, this hasn't happened since we were in our 20's !

Lesson learned. I rather they declined the $ & be embarrased than pay $105 for some gas & some car parts.

 

[CowboyCO]

No -- never. I link my account to my savings and if it were to overdraw the account, it automatically transfers from savings to checking.

Be your own bank as much as you can!

 

[ElizabethG]

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.

My CU is similar to above. If my checking account is empty, my debit card turns into a credit card. I opted for the minimum available credit, $1,000. I balance the account online every week and if I have gone over, I transfer money to pay off the credit debt and the finance charge is usually around 0.20 cents. That service is free at my bank. I can't imagine being charged $35if that happens! Thanks for the reminder to never, never, never leave the credit union.

 

[Deffenm]

I don't have to do anything to Opt Out do I? I read the notice and laughed at the option but assumed as long as I didn't respond saying I wanted it I would automatically be listed as Opt Out. Just want to make sure they don't make me Opt In because I didn't respond. I have never overdrawn our act because I am anal and write everything down right when the transaction happens and DH knows if he does not tell me right away I will take his card from him.

 

[Happy Mom2]

I work at a financial institution, and I can tell you that I did not opt in on my own accounts. Basically, it only benefits the financial institution.

 

[jmillanon]

I don't understand why, in this day and age of internet banking, anyone should need overdraft protection. I can look at my account 24 hours a day and see how much money is in there. I don't write checks anymore so there's nothing mysterious ever floating around out there that might clear unexpectedly.

I've never overdrawn because I always know exactly how much I have in the bank.

Maybe I'm just kind of Type A though.

Please, please, please, for the love of all that is good, do NOT rely on your financial institution to tell you what your balance is! Please keep track of your finances, because if you forget something, it could result in a card decline, an overdraft, or a bounced mortgage check.