Overdraft Protection Opt-In Comes Into Effect
As of yesterday, banks need to ask customers whether they would like to be allowed to overdraw their checking accounts for a fee, usually $35. About 70 percent of Americans are expected to do nothing or say no to this overdraft protection, meaning their banks will start rejecting transactions overdrawing their accounts — for free. This is expected to seriously hurt some banks’ bottom lines. Last year, big banks made $38.5 billion in those $35 increments, for transactions that averaged just $17. Before the change took effect, banks mounted a tremendous campaign to enroll customers in overdraft protection programs.
