Fine-Tuning the New Overdraft Fee Law

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Kansas City Star 
June 1, 2010

A new law regarding overdraft fees takes effect on July 1, and the Federal Reserve has issued some clarifications regarding the rules. The legislation requires banks to provide an opt-in provision for customers who want overdraft protection on their debit transactions. Previously, banks could automatically enroll customers in overdraft programs. Banks also must send confirmation of a customer's decision to opt-in before any fees are levied. Account holders must provide separate opt-ins for each account they have. Additionally, banks must use the term "Total Overdraft Fees" when tallying the fees on statements.
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