Are you one of the many Americans out there with a checkbook? Still writing checks to cover purchases when you don’t have the cash on hand to pay for them? Well, you may want to rethink ordering more checks, because many major banks have decided to drop the “R” in “FREE” checking, and will soon be charging you for your checking account(s).
Uh, why exactly are they doing this?
Blame the CARD Act. The Credit Card Accountability and Disclosure Act was enacted into law in May of last year to, among other things, severely restrict the fees credit card issuers would typically thrust upon clueless consumers. Now that the number of possible fees has been knocked down significantly – costing some credit card companies tens of BILLIONS of dollars in lost revenue – those issuers are looking to recoup those losses somewhere else, and that means transferring old fees (over the limit fees) to brand new ones (checking fees).
Is my bank doing this?
Most major banks are adopting this policy, so unless you bank with a smaller, local bank or credit union, there’s a good chance your bank will adopt this practice if they haven’t already. Call your local branch before you cancel your account, though, just to be safe.
Will all banks do this?
It’s obviously too early to tell for sure, but most banks do tend to follow others’ examples if they prove to work out. Again, you’ll want to call your bank to find out for sure if they’re enacting this.
They’re already getting enough of my money; is there any way I can avoid this?
Well, you can always kiss your checking account goodbye, and never worry about it again. But that wouldn’t be the best of ideas, so instead, if your bank does decide to adopt checking account fees, we’d advise you to check with them on your options. You may be able to bypass the fee by keeping the account active with direct deposit and online bill pay options. Also, keeping a minimum balance may just do the trick.
Check with your local bank regarding these fees and how exactly they’ll impact your financial situation. For more personal finance tips, including credit repair and debt relief advice, give one of our specialists a call.
For more information about credit laws, credit repair or debt relief, please contact mycreditgroup.com
