March 19th, 2010

Overdrafts are OVER!


We all get them and more importantly, we all dread them. Overdraft fees will soon become a dreadful reminder of the past for many of America’s banking customers. This new reform implemented by the Federal Reserve for banks such as Bank of America and Chase will take effect this summer and should save many of us young Americans hundreds and perhaps even thousands of dollars. Similar regulation went into effect in 2009 and earlier this year with minimal satisfaction.

An estimated 75% of banks are believed to have automatically enrolled new customers into an overdraft protection plan each year over the past decade. Not only does this generate more debt-ridden consumers, but much of the banks’ revenue. The new regulation will continue to allow overdraft fees on automatic billing and bounced checks but, debit purchases will be without charge.

While this may seem like a blessing to most of us, banks such as Bank of America, which benefited the most from these overdraft and non-sufficient funds fees, are estimated to lose hundreds of millions of dollars with this new regulation in effect. This could potentially spell another cycle of bank failure much like what we saw in 2009 when many of America’s banks had to be rescued by the Federal Reserve.

Consumers will now face a declined notice for debit charges in stores with no accompanied overdraft fees as well as an overdraft fee message at ATMS. However, they will also be expected to save and/or spend the extra dollars – consequently putting more money back into our rejuvenating economy and into our savings’ accounts!

About the Author

Royce Badger
Royce Badger is a young, aspiring lawyer and writer from Atlanta, GA. Having attended school in the United States and Europe, Royce brings to the table an international perspective and a heightened sense of urgency on political matters with a slight urban twist.



Find the Value: Take Advantage of Your Possessions

To kick-off the new year, I sat down and chatted with online shopping expert, Michelle Madhok. Michelle took the time out to offer us some key details of how to value items we already have. In addition to being founder of SheFi...
by DeAndra Harrison

3d rendering of handsets from an old vintage phone

How Do Small Collection Accounts Impact Your Credit Score?

Fortunately, there is one recent change to the world of credit scoring concerning small debts, which are sometimes called “nuisance” collection accounts. Fair Isaac, creator of the FICO score, has rolled out to all three cr...
by Socialtik Mag


Creating a Personal Finance Statement

If you own a small business or are self-employed, this guide will help you track income and expenses on a regular basis. Entrepreneurs tend to create personal financial statements for one of two reasons. Either they love number...
by DeAndra Harrison



Fall Style: Jeffrey Campbell Shoes

Vintage inspired, runway-trending shoes by Los Angeles based designer Jeffrey Campbell, are this season’s must-have style pick. The family owned shoe line has been around for 10 years. It credits it’s inspiration to...
by Genel Ambrose


Is Marketing a Money Drain or Money Fountain?

Marketing is an essential part of running a business, often overlooked or poorly implemented due to busy-ness of the Owner, this gets looked upon as money draining out of the business. On the other hand, if done right and imple...
by DeAndra Harrison



  1. I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me.

  2. The post is written in very a good manner and it entails much useful information for me. I am happy to find your distinguished way of writing the post.

  3. An estimated 75% of banks are believed to have automatically enrolled new customers into an overdraft protection plan each year over the past decade.

  4. I think more updates and will be returning. I have filtered for qualified edifying substance of this calibre all through the past various hours.

  5. Thanks for the info, maybe I can use this ended my tufted marketing and I’ve been use untold anulus media in run a interaction and they someone existing a big amend on me.

  6. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter Users
Enter your personal information in the form or sign in with your Twitter account by clicking the button below.

thru 9/26 - Fall Sale. 30% Off select styles. Disc