Today's Advice from a Billionaire: "Don't Be an Overdraft Sucker!"
There's a story in today's New York Times about banks' aggressive efforts to keep customers paying overdraft fees. That's because, come July 1 banks will have to get their customers to opt in to the service that covers purchases made using a debit card when there isn't enough money in their accounts, and they're panicked that if folks just say no, they'll lose billions in overdraft fees. Just ask Dallas architect Mark Sorenson, who tells The Times that when he went into his Bank of America branch to "turn off the overdraft function on his debit card," he was warned of dire consequences:
Beware, his banker cautioned. If Mr. Sorenson used the card to buy gas, the station might place a hold on his account and he might not be able to fill up at all, even if he had enough money in the bank to cover a full tank.
"My impression was that it was something he'd been briefed on," said Mr. Sorenson, an architect who said he had tired of paying multiple fees when the bank automatically covered shortfalls on his debit card. "He was trying it out on me."
So happens that Dallas Mavericks owner touches upon this very topic this morning in a blog item titled "How to Get Rich Part 1a." Long story short, writes Cuban: "Dont be an overdraft sucker!"
Get the This Week's Top Stories Newsletter
Every week we collect the latest news, music and arts stories — along with film and food reviews and the best things to do this week — so that you'll never miss Observer's biggest stories.