WASHINGTON (CN) – ATM users tired of paying fees and fines soon may get some relief when payouts from an ATM or a debit card lead to an overdraft on their accounts, according to a draft Federal Reserve System regulation.
If the rules go into place as planned, banks would not be able to charge overdraft fees unless account holders were given the option to opt out of the transaction, or were given the option to opt in to the bank’s overdraft protection program.
Banks also would be prohibited from assessing overdraft fees if the overdraft is caused by a debit hold placed on funds in the consumer’s account that exceeds the actual amount of the transaction, a practice common with car rental agencies and hotels.
Click the document icon on the front page for details and links to the regulations. The document icon under the “Reserve Requirements, Truth in Banking & More” heading leads to other new regulations.