By Susan Tompor
Detroit Free Press
WWR Article Summary (tl;dr) Consumers should be cautious about how they use their accounts, as they might not realize that banks can have some different policies for how they process some transactions. (LIKE OVERDRAFT FEES!)
Detroit Free Press
All anyone can do is shop for higher, promotional savings and CD rates, and keep a close eye on some tricky practices and fees. Here are some suggestions:
-Try to avoid rising overdraft fees
If you’re regularly pulling out a debit card, pay attention here as it can be amazingly easy to get smacked with a string of high overdraft fees.
And we’re not expecting any regulatory relief ahead.
Early in May, the Consumer Financial Protection Bureau essentially kicked aside plans to overhaul rules relating to overdraft fees.
Much to the frustration of consumer watchdogs, acting Consumer Financial Protection Bureau Director Mick Mulvaney is moving in a vastly different direction than his predecessor Richard Cordray, now the Democratic candidate for governor in Ohio.
Banks had fought hard for years against any further crackdown on overdraft rules. For now, they’ve won with the latest delay out of the CFPB.
“They’ve sent a pretty clear signal that this isn’t a priority for them,” said Debbie Goldstein, executive vice president at the Center for Responsible Lending.
Under federal regulations that went into place in 2010, banks cannot charge overdraft fees for debit card purchases and ATM withdrawals without a consumer’s earlier consent or without what’s known as an “Opt-in.”
In reality, consumers find “opt-in” rules confusing, particularly when they’re opening up a new account. Many times, Cordray had argued, consumers weren’t fully informed about the risks of running up high fees by opting in for overdraft coverage involving debit cards and ATMs.