Just last week, the Pew Safe Checking Project estimated that almost one in five Americans has overdrawn their accounts and two-thirds have overdrawn their accounts multiple times.
If you've drained your bank account and don't know it, even the tiniest purchase can add up to a fee. The average overdraft is $28.
That's why law makers are talking about an Overdraft Protection Act. The legislation aims to cap fees at six per year and require ATMs to notify you if your transaction is going to trigger an overdraft.
Rep. Carolyn Maloney (D) New York had this to say:
"With the rise of debit cards and the constant presence of swipe terminals to use those cards to pay for everything from a tank of gas to a cup of coffee to a candy bar, it's easier than ever for a consumer to overdraw their checking account and incur an overdraft fee. Just last week, the Pew Safe Checking Project estimated that almost one in five Americans have overdrawn their accounts and two-thirds have overdrawn their accounts multiple times. That's how a cup of coffee can easily become a fancy $35 fee, overdraft fee and it can happen faster than you can say overdrawn."
The legislation aims to cap fees at six per year and require ATMs to notify you if your transaction is going to trigger an overdraft.
