Tuesday, July 20, 2010

Oh, the finance updates just keep-a-comin'

I decided to check out what CNN Money had to say regarding the new regs, and I found this article.  NOT surprisingly to me, but maybe surprising to some of my readers, the article stated the following:

Interestingly, though the Fed's new rules are being enacted to protect customers, a Credit.com poll shows that many consumers would rather pay the fees in order to avoid the embarrassment and inconvenience that accompany card rejections.

I hate to beat a dead horse here, people, but do you realize what that statement is saying?  I will be interested to see how much money the banks "rake in" next year in overdraft fees, especially if it seems like the majority of our beloved repeat offenders will just keep rackin' up the fees.  I will say, the CNN article does go into some different options for quick-cash if your card is declined, which is a nice way to educate the consumer.  But you know what?  The consumer had all of that information at his fingertips before the government had to spend billions of dollars putting all of these regulations into place.  And by the way, the banks now have to deal with added expense of sending disclosures and notifications out to each and every client regarding all this mess.

Here's the info from credit.com, which I find to be an interesting site:

Debit Card Overdraft Fees

This summer a new ban on overdraft fees on debit cards and ATM transactions will become law. A new survey by Credit.com found that more consumers would consider "opting in" to overdraft protection just avoid the possible embarrassment of being declined at the register for not having enough money to cover their purchase.

The study found:

48% would “opt-in” to overdraft protection

47% would not “opt-in” to overdraft protection

Ahhh, lifestyles of the poor and the nameless... you know what all of my rich clients tell me?  "Young lady, if you want to be rich, you've got to think rich."  You know what that means?  Spend less, save more!

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