Overdraft fee replacement worse than the original


Ugh. Did we just manage to get one annoying, expensive bank fee out of our hair only to turn around and find another one staring us in the face? Yes, we did, according to MSNBC's Red Tape Chronicles.

Here's the short version. The Federal Reserve is cracking down on banks that are slapping their customers with overdraft charges of up to $35 if they overdraw their account by even a few dollars. Beginning this summer (July for new account holders, a month later for existing customers), Americans will have to choose to be part of this racket. (Think about it; If you spend $10 you don't happen to have on lunch with friends and get charged $35, the bank is essentially loaning you that $10 at a 350% interest rate.)