Sep 16, 2008 -- Remove overdraft authorization from your bank account
Many banks have software systems designed to throw you into overdraft so they can score big on fees. Here's how it works: Let's say you have a debit card. You use it and your transaction is approved even if you don't actually have the money in your account. That's when you'll get hit with an overdraft fee -- even though the transaction goes through!
PIRG now reports that half of all overdraft fees come from debit cards in this way. But there is a solution. You can tell your bank to remove the overdraw authorization on your account. Clark recommends you go in person and fill out the necessary paperwork.
Yes, you'll have the embarrassment of having your card rejected at the coffee shop if you don't have money in your account. But it is better that you should have to dig through your pockets for cash than pay a hefty fee later and get the transaction approved up-front.
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