The federal
bank, thrift, and credit union regulatory agencies today announced the
publication of a new consumer resource, Protecting
Yourself from Overdraft and Bounced-Check Fees.
The
brochures key message to consumers is that the best way to avoid overdraft and
bounced-check fees is to manage accounts wisely. That means keeping an up-to-date check register, recording
all electronic transactions and automatic bill payments, and monitoring account
balances carefully.
Many banks, savings and loans, and credit unions offer
"courtesy overdraft protection" or "bounce coverage" plans
so checks do not bounce and ATM, debit card, and other electronic or automatic
transactions go through. But most
financial institutions charge a flat fee (often $20 to $30) for each item they cover. Even if a financial institution has a
bounce-coverage plan, there is no guarantee an overdraft will be covered.
The federal
financial regulatory agencies want consumers to know that careful account
management is the lowest-cost way to avoid overdraft and returned-check fees
and protect your hard-earned money. If
overdraft protection is needed every now and then, consumers should talk with
their financial institution or a financial adviser about what choices and
services are right for them. Financial
institutions may provide other ways of covering overdrafts that may be less
expensive. For example, consumers may
be able to link a savings or other account to automatically
transfer funds into their checking account. Consumers also may be able to establish an overdraft line of credit or link a checking account to a credit card.
The
interagency information is available on each agency's web site. A PDF (Portable Document Format) version is
provided on the web site so that consumer groups, financial institutions,
agencies, and other organizations can download and print copies for
distribution to their clients and customers. It includes a space on the back panel for
organizations to provide their own contact information.
Single
copies of the brochure are available free of charge from Publications, Mail
Stop 127, Federal Reserve Board, 20th and C Streets, N.W., Washington, D.C.
20551; 202-452-3245.
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Media Contacts:
Federal Reserve Susan Stawick 202-452-2955
FDIC David
Barr 202-898-6992
NCUA Cherie Umbel 703-518-6330
OCC Dean DeBuck 202-874-5770
OTS Erin Hickman 202-906-6677