![]() ![]() ![]() ![]() With overdraft transfers, a transaction that overdraws your checking account will trigger a transfer from your savings account to your checking account to cover the transaction. Also, many banks offer free overdraft transfers. Most banks now have mobile apps which can notify you when your balance falls below a certain threshold. To avoid NSF/overdraft fees, set up low-balance alerts. On Your Side: Biden Administration targets 'junk fees'.Nevertheless, NSF/overdraft fees can still be costly, and it's important to avoid them. So if you make a mistake by not having enough in your account to cover a transaction, the fees shouldn't be as costly as what BofA customers experienced. The good news is that many banks, including BofA, have made their NSF/overdraft fee policies more consumer friendly in the last few years. NSF charges and overdraft charges - the fee applied when an account is overdrawn and the bank covers the transaction charge on the customer's behalf - are common fees at banks. When this charge was unfairly applied multiple times, the total fee amount quickly rose to a burdensome level. The problem with what BofA did wasn't that it charged an NSF fee, but that is charged multiple NSF fees for the same transaction. Banks will typically decline a transaction because of insufficient funds and charge the customer an NSF fee. An NSF fee occurs when there's not enough in an account to cover a transaction. The first BofA transgression cited by the CFPB involved non-sufficient funds (NSF) fees. Here are a few simple steps consumers can take to help them avoid being victimized by their banks. We've seen similar transgressions at many other banks over the years, and we are likely to see more in the future. The Consumer Financial Protection Bureau on July 11 fined Bank of America for three types of transgressions against its customers, each costing consumers money and time. Bank of America ordered to pay millions for bogus fees, other violations 00:27 ![]()
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