Overdraft Protection
The recently passed Credit Card Accountability Responsibility and Disclosure Act does a good job of getting rid of a number of the most abusive debit- and credit-card practices, including the automatic fee when you charge a purchase on your debit card that exceeds the amount of money you have in the bank. But consumer advocates say there are still some issues when it comes to so-called overdraft fees. First of all, they still exist with banks and ATM withdrawals. Like with debit-card purchases, consumer advocates say bank customers should be asked if they want the service and to pay for the relatively high fees that come with it before being automatically enrolled.
"We think that what the banks charge for these [overdraft] loans are not at all in line with the risk that the banks take," says Travis Plunkett of the Consumer Federation of America.