The end of free checking?
December 7, 2009 | alternatives, federal legislation, industry | Comments (0)This business columnist thinks so:
Don’t like the idea that if you are close to the bottom of your checking account and you go over the line with a $7 sandwich you could be subject to a $35 overdraft fee? You don’t have to deal with that anymore since the Electronic Funds Transfer Act, or Regulation E, became effective Nov. 12.
Reg. E prohibits banks from charging overdraft fees unless the customer opts in to overdraft protection.
Banks and other institutions will pull in $38.5 billion this year from overdraft fees according to data compiled by the research firm Moebs Services Inc.
So what is the impact on the community institutions?
“It is going to be significant for the industry,” said Brad Hunter, senior vice president of Exchange Bank. “It will be a financial hit.”
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