Banks act like they are doing us a big favor by paying for checks and debits when our accounts are overdrawn. But they really aren't, they are charging ridiculous fees for doing that, on average $35 and more per item. A simple timing error or occasional mistake that causes your checking account to be overdrawn briefly can cost hundreds of dollars in fees!
Congress realized that and enacted a law that requires banks and financial institutions to have its customers "opt-in" to their overdraft plan. The banks recently sent out messages and letters to their customers offering them the chance to "opt-in" to the plan -- sounds nice but really that "opt-in" gives them your permission to charge you those crazy fees.
So if you are asked to "opt-in", don't. If you already did, change it. You can protect yourself from overdrafts by setting up an automatic transfer from a savings account. Transfers usually cost $10 per transfer (a lot less than $35 per item paid!). Or you can set up a free credit card at your bank that is to be charged in the event your checking account is overdrawn and needs funds in it to pay for items trying to clear. Usually there is no fee to keep the card, and it is charged a fee of $10 or so if it has to be used to cover. Check with your bank to see what options you have.
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