Despite new banking regulations designed to protect consumers, banking complaints have soared to 80,000 this year. That’s the highest in the last 15 years. In addition to mortgages and foreclosures, one of the high complaint areas is in the area of overdraft fees. In 2010, overdraft fees are expected to be in the $34 billion range. So much for banking reform to protect consumers! See full article at Yahoo Finance: http://finance.yahoo.com/news/Bank-complaints-soar-even-apf-794516527.html?x=0
Don’t get caught up in these excessive fees! To stay out of trouble, follow these recommendations:
- Consider switching to a credit union for better service
- Get on a good budgeting program and monitor your spending daily
- Set up sub-accounts for Virtual Envelopes budgeting technique vs cash envelopes (see my blog on Credit Unions and Virtual Envelopes)
- Be very careful on your Debit Card usage – over usage drives a lot of overdraft fees
- Understand your opt-in / opt-out for overdraft protection
In addition to asking about your financial institution’s Annual Percentage Yield (APY), make sure you also inquire about their CPY and how they resolve overdraft issues. Don’t be one of thousands of people that have paid $140 for a $4 cup of coffee because of multiple overdraft fees occurring in a single day due to insufficient funds and careless use of a debit card.
