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CFPB Issues Consumer Advisory on Overdraft Coverage

Posted on 2/27/2012

The Consumer Financial Protection Bureau has issued a consumer advisory on overdraft coverage and fees. "Have you opted in for debit and ATM overdraft coverage and fees on your checking account? The CFPB wants you to know your options," the advisory said.

It noted that "institutions can't charge you for overdrafts on ATM or point-of-sale debit card transactions unless you have opted in. Knowing your status allows you to decide what is best for you."

The advisory explained there are steps consumers can take to reduce or eliminate overdraft fees. They include linking the checking account to a savings account; asking the bank if you're eligible for a line of credit or linked credit card to cover overdrafts; tracking your balance as carefully as possible; and signing up for low-balance alerts.

Meanwhile, the CFPB also urged consumers subscribed to its information service to determine if they're opted in or opted out of debit card and ATM overdraft protection, and to report their status on Twitter or Facebook. "Your input will help us as we examine whether debit overdraft practices work for consumers," the bureau said.

To read the consumer advisory visit: http://www.consumerfinance.gov/whats-your-status-when-it-comes-to-overdraft-coverage/



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