For all who are getting eaten alive by rampant overdraft fees from your financial institutions, the Federal Reserve have just passed a new law that’s gonna put money right back in your project.
According to a new report, consumers will no longer be hit with unexpected overdraft fees under new federal rules that take effect next summer.
The rules also prohibit financial institutions from discriminating against consumers who do not opt in. Banks must provide those customers with the same account terms, conditions and features — including pricing — they provide customers who do opt in, the board said.
Fees collected by U.S. banks from all consumer overdrafts, including checks, are projected to hit about $38 billion this year alone.
It’s about damn time somebody did something.
Under the Fed’s new rule, which will take effect July 1, 2010 banks will be required to notify new and existing customers of their overdraft services and give customers the option of being covered.
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