The Dreaded Overdraft Fee
These days it seems your bank is anxious to protect you – for a price. Overdraft protection is perhaps the most egregious of these new bank charges, and an overdraft could end up costing you hundreds of dollars in fees and charges. With overdraft protection in place you may be allowed to withdraw money from an ATM or conduct a debit card transaction even if there is not enough money in your account to cover it. The catch is that overdraft fees are imposed, often with separate fees for each item. These charges can wreak havoc, and overdraft fees are always among the top customer complaints.
What You Can Do
Fortunately customers are free to opt out of this “protection”, although many banks do not make it easy. When setting up a new checking account it is always a good idea to ask about, and opt out of, overdraft protection. If you have an existing account it is a good idea to ask if overdraft protection is included, and find out what you need to do to remove it from your account.
Deposit Returned Charges
If you end up with a bogus check you could be victimized twice. You already know you will be out the money you thought you had coming, and it will be up to you to chase it down. But did you know your bank probably charges a fee for the returned item as well? The amount of the charge will vary, but most banks will charge you for having a deposited item returned unpaid.
What You Can Do
The best way to protect against these charges is to only accept checks from people and businesses you trust. No matter how authentic the check looks at may still be bogus, so insist on only cash when dealing with anyone you do not know well.
