Sunday, August 1, 2010

Banks Get Pitches on Overdraft Protection

Marketing and technology companies are looking to assist financial institutions identify customers who are most likely to incur the hefty fees ahead of new federal overdraft rules taking effect Aug. 15., the Wall Street Journal reported today. Issued by the Federal Reserve, the rules require customers to sign up for a bank's overdraft program before the bank can charge the customer for overdrawing the account. The new rules apply to debit card withdrawals made at automated teller machines and store cash registers. Starting next month, people who overdraw their accounts and haven't opted into a bank overdraft program will see those charges rejected. The rules don't apply to certain electronic transactions, such as automatic bill payments.