New law helps consumers avoid overdrafts - KMOV.com

New law helps consumers avoid overdrafts

(KMOV) – If you’ve ever overdrafted a bank account, you know it’s no fun, especially when you’re hit with excessive fees for going in the red. But did you know there are already laws in place that give you the option to avoid those fees? 

As of July 1, the Federal Reserve now requires all banks to incorporate “overdraft protection” to keep the consumer from getting too make overdraft fees.

This means that you can now choose whether you want the bank to “loan” you the money and charge you the fee, or simply decline your debit card and avoid additional charges.

 

Customers should check with their banking institution for specifics on avoiding overdraft fees.

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