Banks are a sneaky bunch and for those not paying attention they could be the next victims. Now, for a long time banks have been taking money out of the hands of their customers for careless mistakes. Whether you thought this was fair or unfair the truth of the matter is that it cost you and others just like you a pretty penny. However, just last year the government stepped in to prevent banks from doing things like charging overdraft fees and the banks were none too happy, so they decided to fight back.
You may have heard of something called overdraft protection. You have certainly seen your bank ask you about it in the past few months. Whether it has been online or in the bank branch they have been trying to get you to enroll. The idea that they are pitching to you is that it’s the best way for you to keep from having the embarrassment of getting your card denied. However, there is more to the story than just that. This is not as nice an opportunity as it seems.
The idea is that if you do this you’ll go back to the way things were. This means that you will be able to have the bank cover you for your losses but you’ll end up paying the same type of high overdraft fees that the banks just were forced to get rid of by the government. This is a very serious situation and it’s one that you are likely better off declining. If you are having trouble staying in the black then you certainly don’t need the threat of overdraft fees staring you in the face. Be smart and say no to overdraft protection. It won’t protect you.