According to an article in the Star-Telegram, banks that are losing profits because of the new credit card legislation are now looking to debit cards and bank accounts to make up the difference. The recently passed credit card legislation requires that banks give customers a choice on whether they want to opt into over-draft programs that can be costly.The article said:
“That law only applies to credit cards, but lawmakers are now shifting their sights to debit cards. Last week, Sen. Christopher Dodd, D-Conn., said he plans to introduce legislation that would require customers to sign up for overdraft protection.”
In response to the proposed legislation which would mimic rules designed for the credit card legislation, some banks quickly moved to reform their over-draft policies for debit cards and bank accounts. For example, Bank of America customers will not be charged overdraft fees when their bank account is overdrawn by less than $10 a day. However, a $35 fee will be implemented if the account is not balanced within five days.
That’s good news for customers who typically overdraw their bank accounts and quickly correct them; but credit card consumers should be ready for fees to shift from their credit card account to their bank account. Keep an eye out for new programs that may charge a per month fee for checking accounts under a certain limit or that charge a per transaction fee for typically free services such as teller service.