Mar 10 (THAINDIAN NEWS) In an announcement from Bank Of America which was released today, it was stated that they have a plan to rid their customers of overdraft fees that are caused by debit card purchases. This comes on the heels of the Federal Reserve’s new requirements plan that are set to go into effect this July.

According to the new plan from the Federal Reserve, banks will no longer be allowed to auto enroll their customers into an overdraft protection program. This type of program, although good for covering an accidental bad check, charges fees for the service. One bank known as “Best Bank” will cover the charge for you, but then charges the customer a new $37 dollar fee every eight days until the account is caught up. Ben West is a Best Bank customer who retired from owning a construction business and is a Navy Veteran who now draws a monthly salary. When a miscalculation of less than 4 dollars was made on his account, the bank was more than glad to cover the difference for him. By the time the letter notifying him of the “courtesy” they had done arrived at his home, there was nothing he could do but watch his account be drafted for $37 every 8 days until his next check. His check was direct deposited. As soon as his check hit the bank, of course, the fees were taken out. “This was a one time occurrence, and a very powerful lesson,” Ben said. He added, “I like my bank, I am not bashing them, it is just the way the rules are.”

Ben’s story is the exact type of situation the Federal Reserve has made the new rules for. According to the Federal Deposit Insurance Corp, more than 75% of banks automatically sign their customers into overdraft protection programs. For Bank of America customers, one of two things will now happen if they attempt to make a debit card purchase that is over the amount in their account: One, they will be denied purchase, OR Two, they will be alerted that a $35 overdraft fee will be charged if they accept, and they will be given the choice to accept the fee or deny the purchase. I think this type of warning should be mandatory, don’t you?