Todd Clark

Todd Clark

If you have not already, you will be hearing from your various financial institutions, including United, on new overdraft service regulations affecting your Debit or ATM card. These new regulations come from the Federal Government – and while they are changing many things about banking – we feel they are a good thing for all involved.

Why this is good for consumers:

  • This regulation is forcing all financial institutions to be transparent in their overdraft services and policies. It is an exciting time when you can search a banks website and find full disclosure and transparency of their fees in this regard.
  • Gives Choices! Not all clients want the same things from their checking account and this puts you in the driver’s seat of your preferences.
  • An opportunity to educate yourself on the tools and services – such as balance alerts and internet banking – your financial institutions offer to avoid incurring overdraft fees in the first place.

Why this is good for financial institutions:

  • This new regulation is forcing us to rethink our overdraft policies and strategies.
  • Financial institutions are being forced to look for new and innovative ways to add value to your banking experience and provide you the services you need and not look to an old model.
  • Being transparent to our clients is a win-win and adds trust to the relationship.

There has been a lot of publicity around how “banks charge $32 for a $5 Starbucks” and while this is not completely untrue, that situation and attention is driving an inaccurate perception that these fees are our primary source of income. United is fortunate to have a diverse suite of products and business lines which enable us to maintain strong core earnings while being focused on value added products as opposed to just overdraft fees.

What should you do?

  • Educate yourself on each of your financial institutions’ policies around overdraft services and make an informed choice.
  • To learn more about United’s overdraft services click here
  • To learn more about Regulation E (the Federal Rule) click here

We would love to hear from you – what do you think of overdraft services — will you be Opting In?

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