Fed Curbs Overdraft Fees For ATMs, Debit Cards

Law360, New York (November 12, 2009, 3:56 PM EST) -- The Federal Reserve moved Thursday to block banks from charging consumers overdraft fees on cash withdrawals from ATMs and one-time debit card purchases unless the consumer specifically preapproves overdraft services for those types of transactions on their account.

The Fed's final rules prohibiting the overdraft fees will also require banks to provide customers who do wish to sign up for overdraft protection with a written notice explaining the service, describing the fees involved and listing other available options. The rules go into effect July 1, 2010....
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