Under the new financial reform laws, checking account customers now have more options for dealing with bank overdrafts. Regulation E of the Dodd-Frank Act requires a bank to only provide overdraft protection services if the customer specifically opts in. Previously, customers were automatically enrolled without consent, and some found themselves awash in overdraft fees.
According to their Dec. 16 report, “Overdraft Services: Fees and Options,” the financial services research group Corporate Insight found that all of the banks surveyed offered at least one of two types of overdraft services, with a majority (88 percent) allowing customers to opt in to these services on line.
The third option, thanks to the new law, is for the customer to do nothing, and not opt in to either service.