Overdraft Fees

When you sign up for a bank account, there is a lot of fine print. In most cases, people scan over their contract, desperately looking for the dotted line so they can sign and be on their way. Overdraft policy is one of those important things that many people miss. Understanding your bank’s policy may help prevent you from overspending.

If you or someone you know is struggling to keep up with their bills and payments, they may be nearing bankruptcy. Understanding your options is imperative when making the best financial decisions for your future. Contact one of our experienced West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800 today for a free initial consultation

What Are Overdraft Fees

Overdraft fees occur whenever you spend more money than your bank account has available. You can overdraft by making an ATM withdrawal, a debit card purchase, writing a check, or from an automatic payment that you have established with your account.

In an effort to protect consumers, the Federal Reserve has recently placed a ban on most ATM and debit card overdraft fees. Although this law will not be enforced until July 1, 2010, once it is in place, banks will not be able to allow overspending. If you are attempting to spend more money than you have available, your purchase will simply be rejected.

The only exception to this new law is in cases when a consumer has established an overdraft protection plan with their bank. In these instances, the contract’s stipulations will have to be clear to consumers.

Contact Us

In the mean time, however, overdraft fees can quickly put you in the hole. If you find yourself unable to stay in the plus on your bank account, filing for bankruptcy may be beneficial for you. Contact the West Palm Beach bankruptcy attorneys from Eric N. Klein & Associates, P.A. to discuss the details of your situation. Contact us today at 561-353-2800 to schedule your free consultation.