Financial Conversations with Fitz #66 - New Overdraft Rules for the Banking Industry - 05/25/2010
A beautiful morning! The soil temperatures are at 71 in Kanawha. It looks like the grains will open down this morning with the good crop prospects. Some more problems economically now in Spain. The DOW open will probably be flat to low for the same reason. I see the grain people are busy making their predictions now that most of the crop is in the ground. There are so many variables affecting the arrows up or down. Still waiting for China to decide how much grain they are going to buy.
Well, we have been busy with mailings to all of our debit card customers this last week. The banking industry is going thru a lot of regulation adjustments due to the mess on Wall Street in 2008. This is the first one. There is a major bookkeeping change we need to go thru with overdrafts on your checking and savings accounts as far as checks, ACH, automatic payments , in person withdrawals, ATM and debit card transactions. The regulations say we need to send you a letter that we are going to send you a notice regarding this. What it basically comes down to is if you are ever worried about being overdrawn because of transactions causing an overdraft stopping you from using your debit card in a box store at the end of a long line and your card will not work because of lack of funds, we need to mark your account to go ahead and pay the item. You will need to check to be sure you have one of several of our products that include overdraft protection. You now have to give us permission to do this. I use one of our products that if my checking is short of funds the bank can go to my other account and bring money over to cover that. We also have our Overdraft Defender(SM) that allows you to go over $300. This is important if you are travelling and maybe a deposit hasn’t shown up like you thought. This saves the inconvenience or embarrassment of not having a debit card covered. I have seen it happen to customers that forgot to transfer when they were 10 states away. So if you don’t understand the second mailing that asks you to “opt in” or “opt out” be sure to check with our personal bankers via phone or stop in for some help. With our on line banking products you can also check on this. You have always had these available but the regulators want to be sure you agree to it. So usually you don’t even have to come in unless you want to.
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Questions call TSB at Forest City, Thompson, and Titonka
Remember that you should deal with people in community banks and organizations that when they put something together for you that they will be sitting with them at ball games, church or community events. So, if in doubt give us a call.