Fed Restricts Bank Overdraft Charges

11-12-2009 | Source: emii.com

The Federal Reserve unveiled a plan on Thursday that would prevent financial institutions from charging customers overdraft fees on ATM and one-time debit card transactions, without prior consent. The new rule would require banks to explain overdraft services and obtain agreement from the customer, and would also prohibit banks from discriminating against customers that do not opt-in to overdraft plans. The rule goes into effect July 1, 2010.

Click here to read the release from the Federal Reserve.