Debtmerica Debt News

Consumers paid off most credit card debt since March 2009

Wednesday, September 01, 2010 11:00 AM

It seems more consumers have been able to reduce their credit card debt recently, as charge offs dropped from June to July.

According to a new report from Standard and Poor's Ratings Services, the final numbers related to charge offs - the amount of accounts lenders write off as irretrievable - for the month of July dropped a full percentage point from June's 9.7 percent to 8.7 percent. This was the first time since March 2009 that S&P found the rate of seriously delinquent credit card debt slipped below 9 percent.

"Contributing to the declines, in our view, are reduced spending and more saving by consumers, along with the increasing difficulty and expense for borrowers to get and maintain credit," Kelly Luo, a credit analyst at Standard & Poor's, said.

The report noted that outstanding credit card debt owed to the lenders S&P tracks dropped 1 percent from June to $341.9 billion. That represents a drop of 17.1 percent from the July 2009 total.

Often, consumer credit is tied to unemployment figures, and the continued high rates of joblessness may be contributing to the drops in credit card debt as consumers can no longer qualify to borrow. Add a comment

Facebook to expand its Credits system

Wednesday, September 01, 2010 09:00 AM

Given how Google's profit increases have ground to a halt in recent months, Facebook has begun to aggressively expand its Credits payment system. This includes a new process that will allow consumers to use its online currency in lieu of taking on credit card debt.

According to a report in the San Francisco Chronicle, Facebook will now start selling gift cards for its Credits system in brick-and-mortar Target stores, and will make them available in amounts of $15, $25 and $50. And while consumers will be able to continue to use this currency as they have in the past - to buy advertisements on the site, or make payments for games like Farmville - their options will also be expanded.

The report said that one option Facebook is currently exploring and may implement in the near future would allow users to make payments at selected third-party ecommerce with their Credits rather than taking on credit card debt to do it. This process could not only help consumers scale back the amount of credit card debt they take on, but also give them added convenience. Sites may allow consumers to simply click a "Pay With Facebook" button, rather than fill out all their information.

In addition, the report said that consumers may be able to store their payment information with Facebook when they take on credit card debt to buy Credits online. If so, that could also be used in conjunction with the new Pay With Facebook function, in a way similar to how PayPal works.

The social networking giant is expected to make between $1 billion and $1.5 billion on brand advertising revenues alone this year, the Chronicle said. But this new revenue stream, which will roll into Target stores nationwide starting September 5, could make it a few hundred million dollars more. A former executive at the company told the paper that this business alone could end up being a third of its revenues by the end of the year.

Facebook has over 500 million users worldwide, and many of those are people in their teens or 20s. This market is one that the company has successfully targeted in the past, and one which would be very attractive to third-party business partners looking to increase their exposure. Add a comment

Cost of bankruptcy on the rise

Monday, August 30, 2010 09:00 AM

As millions of consumers across the country struggle with credit card debt and other monthly payments, many have been forced to consider filing for bankruptcy. And the price of doing so is on the rise.

According to a new study from the American Bankruptcy Institute Law Review, the cost of filing for either Chapter 7 or 13 bankruptcy has risen 55 percent since Congress passed reforms to make it harder to do so in 2005. Citing data from cases in Florida, Illinois, Georgia, Maine, Utah and West Virginia, the study found that fees and expenses for attorneys and trustees, filing costs and credit counseling services have led to the increases. In addition, they have reduced the total amount creditors make against the money they're owed.

The study found that Chapter 13 filings now cost consumers $4,077 on average, up from $2,930 in 2005. Similarly, the price of a Chapter 7 case jumped from $900 to $1,399.

While bankruptcy may seem like an attractive option for consumers who are deeply in debt, many experts say that seeking such protection should only be considered as a last resort. Add a comment

Airline miles still moving cards

Friday, August 27, 2010 09:00 AM

While credit card issuers were expected to pare back rewards in a cost-cutting measure after the implementation of the Credit Card Accountability, Reliability and Disclosure Act, many have not. That strategy is paying off for them.

According to a new report from Fox Business, cards that reward consumers with frequent flier miles for every dollar of their credit card debt have been growing in popularity.

As a result, issuers are looking for ways to improve such offers while keeping an eye on their bottom line as more consumers try to eliminate credit card debt. David Gold, senior vice president at Chase, told Fox that despite the Credit CARD Act, interest in the accounts has been robust.

"Over the years, the frequent flier mile has been pretty valuable," he told the news service. "The value is there."

Often consumers will exchange the convenience of being able to compile frequent flier miles for slightly higher rates on their credit card debt or some sort of annual fee. But a recent study found that consumers who use these plans, particularly those that offer double or triple miles, may not be the best value. Consumers may want to shop around to determine which type of rewards card is best for them. Add a comment

Credit card solicitations skyrocket

Thursday, August 26, 2010 10:00 AM

The number of offers attempting to convince American consumers to take on credit card debt that were sent out between April and June marked a significant increase from the previous three-month period.

According to a report from the financial news website The Street, which cited statistics from Synovate Mail Monitor, credit card issuers sent out 640.3 million credit card offers during the second quarter of the year. This was a jump of 83 percent over the 349.1 million they sent out in the first quarter of the year, which was largely paced by two companies. Chase sent out four times as many offers in this period, and Citi's total nearly tripled.

Companies sent out 1.12 billion offers in the first six months of 2010 in an attempt to get consumers to use their company to take on credit card debt, compared with just 1.39 billion sent all of last year. Of those sent from January to June, 71 percent contained some sort of introductory reward or rate, which was the highest such percentage seen since Synovate began tracking this data 22 years ago, the report said.

Credit card lenders are likely sending out these offers because they have an improved view of the national economy thanks to lower rates of delinquency and charge offs seen in recent months. Add a comment

Credit card debt hits eight-year low

Wednesday, August 25, 2010 09:00 AM

The amount of credit card debt the average consumer now carries has slipped below $5,000 for the first time in close to a decade.

According to the latest quarterly findings from TransUnion, consumers cut their personal credit card debt by 4.1 percent in the second quarter of the year. That figure fell from the $5,156 seen last quarter to $4,951, marking the first time the average consumer's debt was below $5,000 since the first quarter of 2002. Further, that number was a 13.4 percent drop from the same period in 2009, when it was $5,719.

And as consumers pared back debt on their credit card, the rate of total delinquency dropped slightly in the second quarter, by 0.92 percent. However, that was a decline of 17.1 percent over the first quarter, and 21.3 percent from the same period a year ago.

Credit card spending in general also declined in the second quarter, and given these numbers, it seems more consumers put the money they would have spent towards paying down their total debt. Add a comment

Lower swipe fees could cost banks billions

Tuesday, August 24, 2010 09:00 AM

Part of the Credit Card Accountability, Responsibility and Disclosure Act mandated that credit card companies had to rein in the fees they charged merchants to process debit transactions. That change could cost lenders billions.

According to a report from the San Francisco Chronicle, Visa and MasterCard - the two largest credit networks in the world - made about $20 billion on swipe fees last year, and all that money came from businesses, both large and small. By changing the rules governing these charges, merchants will save a considerable amount.

"We'll be delighted to see the fees go down," Rick Karp, the owner of a hardware store, told the paper. "Banks have been getting away with murder for some time now. About 3 cents of every dollar spent in our stores goes to banks for the use of the cards."

However, Visa told the paper that it doesn't believe these fees are outrageous. By paying that 3 cents on a dollar, they get guaranteed payment, potential for increased sales, faster checkout times, and increased security and convenience that they wouldn't get if they stopped accepting credit and debit card transactions.

The paper also said that these credit networks are warning consumers that they'll end up paying the amount lost to the regulation of swipe fees in other ways, either by creating other charges or cutting back on rewards. In addition, the lowered cost for merchants doesn't guarantee that the savings will be passed on to customers, they say.

As of July 21, the Federal Reserve Bank had eight months to determine a rate for swipe fees that is "reasonable and proportional" to processing costs, the report said. Doing so takes the power to set these rates out of the hands of major banks. And while these changes only affect debit card transactions, others will allow merchants to decide how they deal with several other types of transactions as well.

The provisions of the Credit CARD Act are designed to give consumers greater ability to handle their credit card debt and offer them more protection from lenders' predatory practices. In addition to reining in fees, these rules also regulate what kinds of consumers have access to certain types of credit and how lenders can alter agreements. Add a comment

Mobile banking catching on with consumers

Tuesday, August 24, 2010 09:00 AM

How people keep an eye on their bank accounts and credit card debt is changing as rapidly as technology will allow.

Many consumers have, in the past year or two, discovered the convenience offered to them by mobile banking, according to a new report from Seeking Alpha, a consumer news website. Much like the online banking and credit card debt management boom about five years ago, experts believe banking on smartphones is going to be the next big thing in the financial industry.

The report said that the Mobile Marketing Association has projected roughly 30 million Americans will use their phones for mobile banking by 2015, compared to about 65 million who will use online banking. For mobile banking, that would mark an increase from about 1 million in 2008. Currently, only 1,000 of the 30,000 banking institutions nationwide offer such a service.

Many consumers may prefer mobile banking because it offers the convenience of instantly transferring funds between accounts or paying off credit card debt while on the go. Some banks are even testing systems that would allow consumers to use their mobile phones to make a payment in lieu of using their a card to compile credit card debt. Add a comment

Credit card rates reach nine-year high

Monday, August 23, 2010 09:00 AM

Many consumers may have had trouble paying off their credit card debt in recent months, and a new study has found that lenders are likely contributing to the problem with interest rates not seen since 2001.

According to new statistics published by market research firm Synovate, interest rates on credit card debt have climbed considerably over the last year or so, from 13.1 percent in the second quarter of last year to 14.7 percent for the same period this year. That rate is the highest level observed by the company since 2001.

A Wall Street Journal report on the figures said that they are especially troubling for consumers when compared to the prime rate - against which rates on credit card debt are set. The current difference of 11.45 percentage points is the largest in the last 22 years. On the other hand, differences in the rates for 10-year Treasury bonds and those on 20-year fixed mortgages are near historical averages.

The Journal report said that the increases are driven by a number of factors, but the primary reason is almost certainly the passage of the Credit Card Accountability, Responsibility and Disclosure Act last year. One provision of that law dictated that lenders could not increase rates or fees on the cards they issue without at least 45 days' notice to consumers.

Further, the report said most lenders are dealing with delinquency and charge off rates that are higher than most historical averages, even despite recent drops. In the past, banks would boost rates immediately on any borrowers who fell behind on their payments. But even this is no longer possible unless a consumer makes late payments habitually.

Those two factors have led to banks setting higher initial interest rates on credit card debt to help preemptively stem the potential revenue losses from more lenient delinquency policies mandated by the Credit CARD Act, the report said.

"We can't come up with penalty pricing or if we can, quite frankly, it's too late to do much good," Stephanie Keire, head of consumer credit-card risk management at Wells Fargo & Co., told the paper.

The final rules of the Credit CARD Act went into effect on August 22. Now the maximum a lender can levy against a consumer is $25 for a first offense and $35 for any further instances within the next six billing cycles. Add a comment

Final credit card rules have taken effect

Monday, August 23, 2010 09:00 AM

For several months, various portions of the Credit Card Accountability, Responsibility and Disclosure Act have been slowly going into effect. Sometimes the new rules set up restrictions for how consumers can handle their credit card debt, others prevented lenders from raising rates without notice.

Now, the latest and final provision, which limits fees lenders can charge for various offenses, is in place. According to the Federal Reserve Bank, credit card issuers can now only apply "reasonable" penalty fees, and are prohibited from issuing some other fees as well. For example, late fees can now no longer exceed $25 unless a consumer makes another late payment within six billing periods. In that instance, the fee can be boosted to $35. Issuers can also increase them if they can justify that the costs it incurs in dealing with these late payments is higher than usual.

The report also said that lenders cannot charge inactivity fees, and cannot charge more than one fee for a single infraction.

Other changes the Credit CARD Act has enacted in recent months include regulating the availability of accounts for people under 21 years old. Add a comment

Delinquency drops a good sign for the economy

Friday, August 20, 2010 10:00 AM

Over the past several months, consumers made a more concerted effort to pay off their credit card debt with greater regularity, and now experts say that this trend is likely to continue.

According to a report from consumer economic news website The Street, the latest improvements in both delinquency - credit card balances that have gone unpaid for 30 days or more - and charge offs - accounts that have gone unpaid so long that lenders simply accept they will never be paid again - bodes well for the economy not only now, but in the future as well.

The report said that the average lender had an annualized charge off rate of 8.1 percent in July, and the number was only that high because of Bank of America's 11.39 percent rate. Most other lenders saw rates well under 8 percent, according to numbers provided by SNL Financial. The average rate for the same month last year was 9.69 percent.

Similarly, delinquency rates dropped to 4.64 percent for the first month of the year's third quarter, down from the 5.39 percent seen for the same period in 2009. The report said this is the lowest such level seen since SNL Financial started following these figures in January 2009.

According to experts quoted in the report, this trend is likely to continue. Richard Bove, an analyst at Rochdale Securities, said that lenders have seen improvements in both categories for a number of reasons, though how much can be directly attributed to them isn't clear. Consumers have made a greater effort to pay down their debt, perhaps thanks to the provisions of the Credit Card Accountability, Responsibility and Disclosure Act. However, lenders have also tried to shut out the riskiest borrowers from having access to lines of credit.

Mark Tepper, president of Strategic Wealth Management, told The Street that the loss and delinquency rates are "bound to continue" making improvements, because consumers are pouring more of their discretionary income into paying off their credit card debt. He also warned that this change in behavior would likely cost retailers and restaurants.

However, several retailers reported more profits despite lower total sales in the second quarter, largely because consumers spent more on their store-issued credit cards than they have in the past. Add a comment

Bank of America and Visa to test new smartphone payment plan

Friday, August 20, 2010 10:00 AM

Many consumers have expressed a desire to use their smartphone to make credit card payments instead of traditional card swiping, and now two financial giants are going to offer them that service.

Bank of America and Visa are going to begin trying out a new system that will allow users to simply tap their phones against a sensor to make a credit card payment. According to a Reuters report, this program will commence testing in the New York City area at the start of September and will run through the end of the year. Visa will also begin a similar trial with US Bancorp in October.

"We see this as a critical capability given the increasing acceptance and adoption of bank services on the phone," Laurie Readhead, Bank of America's head of electronic commerce, told Reuters.

The Visa program will work by implanting a small computer chip into the smartphones of select employees and customers, who will be able to make purchases by tapping their phones on a sensor at checkout.

It was recently rumored that AT&T and Verizon would team up to offer a similar program, but theirs will not be tested before either of Visa's. Add a comment

Survey finds consumers are more satisfied with credit cards

Thursday, August 19, 2010 09:00 AM

More Americans are satisfied with the relationship they share with their credit card lender for the first time in three years, after consumer sentiment toward these companies bottomed out last year.

Overall satisfaction with credit cards was up after hitting a three-year low in 2009, but more consumers said they were less loyal to just one lender, according to findings from the latest annual survey from J.D. Power and Associates. Satisfaction rose to an average of 714 on a scale of 1,000, up from 705 in 2009. However, customers who say they will "definitely not switch" their primary cards over the next year declined to just 22 percent. That rate was 25 percent last year and 30 percent in 2008. Consumers used terms like "financially stable" and "reliable" to describe issuers, but hardly ever said they were "customer driven."

The survey found that about 16 percent of consumers never received the disclosures that were federally mandated by the Credit Card Accountability, Responsibility and Disclosure Act, and only two-thirds of those that did said that reading the documents actually improved their understanding of how their accounts worked. Of that group, only 33 percent said they now "fully" understood them.

"Despite massive efforts by the credit card industry during the past year to educate customers about credit card terms as a part of the CARD Act, customers’ grasp of those terms continues to be elusive," said Michael Beird, director of banking services at J.D. Power and Associates.

The survey found that those who were most satisfied with their credit cards this year were consumers who keep money in their account from one month to the next. These so-called "revolvers" said they were happier despite 29 percent getting a rate increase in 2010, largely because they were more likely than others to report understanding their accounts better after reading their disclosures.

American Express ranked the highest in customer satisfaction for the fourth straight year, the report said. It boasted an average score of 769 out of 1,000, 12 points higher than Discover, its next-closest competitor.

Overall, many consumers may have said they were less loyal to one lender over another because of how high the average American's debt has climbed, making them more likely to look for better deals from other issuers. Add a comment

More credit card spending helps Target meet profit projections

Wednesday, August 18, 2010 10:00 AM

Consumer spending declined in the second quarter of the year, but that didn't stop a major retailer from seeing its profits increasesignificantly.

Target, the second-biggest discount retailer in the U.S., posted a 14 percent profit in the second quarter of the year to meet analyst estimates, according to a report from Bloomberg. While the company's net income rose to $679 million despite sales that were "softer than expected." The company said that the profits rose largely because more consumers used its store-branded credit cards when they did make purchases.

The company's credit card unit saw profits double to $149 million last quarter, and not just because of the amount of credit card debt consumers took on with their cards. Instead, it strengthened its lending standards and saw the expenses from bad debt fall by more than half.

Consumer spending dropped across the country in the second quarter of the year as consumers made a more concerted effort to pay off their credit card debt. Almost all of the country's largest lenders reported fewer delinquencies and charge offs. Add a comment

Credit card lenders step up marketing to small business

Wednesday, August 18, 2010 09:00 AM

The provisions of the new Credit Card Accountability, Responsibility and Disclosure Act offered a number of protections for consumers who were trying to cope with credit card debt, and were designed to help them avoidlenders' predatory practices. The same was not true of cards for small businesses.

Because of this "loophole," credit cards are now seriously ramping up efforts to market to small businesses as a way to drive profits, according to a new report from the consumer advice website Wallet Pop. While the Credit CARD Act limited how many offers lenders could send to consumers, it gave no such protection to small businesses.

As a result, those businesses are now being inundated with marketing materials, the report said. In the second quarter alone, lenders sent out 40.5 million offers for new credit cards, up from just 26 million in the first three months of the year. However, the report also notes that these new offers might be organic as well, because companies scaled back all offers while the economy was at its lowest points, but could be sending out more now that it has stabilized a bit.

The report also noted that lenders have made it easier for businesses to get cards. Now they will only ask for a federal tax I.D. number, so restrictions have been loosened to some extent. There is a reason for this, however. The Credit CARD Act doesn't apply to business cards only when it comes to offers - it doesn't apply to them at all.

Typically lenders will use the credit history of the business owner as the deciding factor in whether they get the card, the report said. That way, the owner can be held personally liable for the debts on those accounts.

As a result, credit card companies can still hike up the rates on those cards without any notice whatsoever, and apply huge penalties for even the slightest mistakes, as they did for consumers before the federal regulations were finalized. The report said they are doing so, too, because of the billions of dollars in profits they're losing from consumers, to whom they can no longer charge these penalties.

These realities have come under fire from advocate groups in the past, who argue that the protections for consumers should extend to small businesses as well. Add a comment

More Americans closed accounts after paying off credit card debt

Tuesday, August 17, 2010 11:00 AM

As Americans successfully paid off their credit card debt in greater numbers, it seems that they simply closed their accounts to keep themselves from accruing even more.

According to the latest quarterly report from the Federal Reserve Bank of New York, American consumers were able to reduce their total nationwide debt to $11.7 trillion in the second quarter, down $178 billion (1.5 percent) from the previous period. That was a decline of $812 billion (6.5 percent) from the peak, which was seen at the close of the third quarter in 2008. Consumer debt has fallen each of the seven quarters since then.

The report also noted that Americans closed 4 million credit card accounts in the last three months, as the total nationwide number of open balances dropped to 381 million from 385 million at the end of the previous quarter. That number was also down 23.2 percent from its peak in the second quarter of 2008.

Consumers seem to have gotten a better handle on their finances over the last few months as credit card and mortgage delinquencies dropped in July. Add a comment

New credit card can help manage credit card debt

Tuesday, August 17, 2010 09:00 AM

Over the past few years, many consumers across the country may have found that credit card debt can pile up in a hurry if they're not careful with their finances and don't pay attention to their spending. Fortunately for those consumers, there is a new credit card, which is offered jointly by MasterCard and Citi, which may be able to help them keep track of their finances.

The new inControl credit card allows for increased flexibility in credit card debt management. It not only allows consumers to establish personal monthly spending limits, it also alerts them when they approach those balance totals. This card will be available to consumers by the end of the year.

Those limits are able to be set up not just for the total account, but even for spending in particular categories. This way, consumers are able to ensure that they aren't spending more than they want to for specific items or services in a given month. Similarly, the alerts consumers can set up will allow them to know when they're approaching these monthly totals, and can be received via text message, email or both. In this way, they are able to stay on top of their finances in real time.

"Through the MasterCard inControl service, we are focused on leveraging the latest technology and consumer trends and our global network to provide card functionality that gives power to the people as they navigate today’s new financial realities," said Ed McLaughlin, the chief emerging payments officer for MasterCard Worldwide. "We are excited to be working with Citi to bring these cardholder alerts and controls to life, offering them better information and greater control over their spending activity."

A MasterCard study found that 49 percent of consumers surveyed felt the inControl card offered them the kind of budgeting tools that would help them to better manage their spending. It also found that 51 percent of consumers would feel safer and more secure in using this card over others.
Many consumers that may be concerned about how safe their credit card accounts are should be aware that the best way for them to protect themselves from a potential threat is to stay vigilant and constantly monitor their finances. Add a comment

Mississippi lets drivers renew license with credit card

Monday, August 16, 2010 11:00 AM

Many consumers may have been frustrated by a trip to the Department of Motor Vehicles in the past, but the state of Mississippi has a new way for them to avoid that hassle.

According to a report in the Pascagoula newspaper the Mississippi Press, every DMV in the state - as well as two county courthouses - now has at least one kiosk that allows consumers to renew their driver's license in minutes. All the consumer needs to do is swipe their credit card and old license, get their picture taken, and wait for the machine to print out the temporary license. The process takes about two minutes.

"I promised efficiency and convenience when I introduced the first kiosk in December," Stephen Simpson, commissioner of the state's Department of Public Safety, told the paper. He added that there will be kiosks in more public buildings in the near future.

By adding machines that allow consumers to make payments by taking on credit card debt, Mississippi not only makes the lives of its residents easier, but also generates new revenues. Add a comment

New York restaurateurs fight back against credit card swipe fees

Monday, August 16, 2010 09:00 AM

Over the next few weeks, more than 1.75 million homeowners in South Florida will get their property tax notices in the mail, and many could be disappointed by what they find inside.

According to a report in the Miami Herald, property values in the state have declined for the third straight year. This year alone, they fell an additional 13.4 percent from the already-down numbers seen last year. That drop signals a loss of $29 billion in values, just in Miami-Dade County.
"This is the biggest drop we have seen in value in Dade County in I'm not sure how long - definitely more than 35 years,'' Pedro Garcia, a local property appraiser, told the paper.

The drop in values has been largely attributed to the increasing numbers of both foreclosures and short sales, as homeowners sought relief from their underwater mortgages. However, many that have stayed in their homes will find that property taxes haven't fallen at the same rate as the value of their property.

The reason for this is that many counties have huge budget shortfalls which they are scrambling to make up, the report said. In most cases, counties added an extra $1,000 to property taxes to fill these gaps.

In many cases, consumers may feel that they have no option but to abandon their underwater homes, which will only lead to more foreclosures, and in doing so drive down property values even more. Add a comment

Consumers enroll in overdraft protection programs after reforms

Friday, August 13, 2010 03:00 PM

Despite many consumers logging onto various websites and complaining about the large fees they used to be hit with when they accidentally overdrew their checking accounts, experts say a surprising number have decided to enroll in similar programs.

According to a new report from Consumer Affairs, a "surprising number" of Americans either have opted in to the new overdraft protection plans, or will do so in the near future. One study on the subject found that 26 percent of consumers have already told their bank they would like to continue receiving this protection, and the same number said they will do so in the near future. This has come as a bit of a shock to many experts, who expected to see many consumers say good riddance to any additional bank fees they could be hit with.

However, the report said, there are some potentially good reasons for consumers to opt into these new programs after complaining so fervently about the old ones, which included fees as high as $40. For one thing, the new financial laws now regulate how much banks can charge if a consumer overdraws his or her checking account. But perhaps more importantly, many lenders have given consumers more options for dealing with overdrafts because they know it is now a voluntary program and they need to give their customers a good reason to enroll.

The report said that many banks are now offering a new way for consumers to handle a payment that makes their checking account sink into the red. For example, many will now allow consumers to attach their checking to a credit card account. This means that any purchases that would result in an overdraft can either be transferred in full or in part into their credit card account. Many banks also allow customers to link other accounts to checking, drawing funds - from savings, for example - as needed to cover purchases. Of course, these transactions will also cost consumers a fee, which can be either annual or on a per-transaction basis, but they will be less egregious than the old cost of an overdraft.

Federal law now requires all banks to ask consumers whether or not they want to enroll in these overdraft protection programs beginning on August 15. Institutions can no longer make participation compulsory. Add a comment