Lieutenant Governor Gregory R. Francis, in his capacity as V.I. Banking Board chairman, is advising consumers to be aware of changes to the banking industry brought about by the recent implementation of financial reform legislation. He specifically alerts the community to be aware of new regulations affecting overdraft protection services, as a result of the passage of the FAIR Overdraft Coverage Act.
The new regulations, which are intended to protect the banking consumer, now require that bank account holders give authorization to their banks to provide overdraft protection services. Customers who choose overdraft protection, or opt-in, are authorizing their banking institution to honor ATM transactions or debit card payments even when there are insufficient funds in the account. Customers who opt-out, or do not authorize overdraft protection, will find that their ATM/debit card transactions will be declined at the register if their funds are overdrawn. Customers who authorize overdraft protection can expect to incur fees and interest charges for the service.
Banks were required to send notices to their customers reminding them of the changes to their overdraft protection services. Lieutenant Governor Francis is encouraging all residents to stay apprised of changes to the banking industry that may affect how they manage their financial affairs. “We all have a personal responsibility to ensure that we are informed of anything that impacts how we manage our money and our financial lives,“ he said.
Anyone with questions about the changes to the services offered by their banks is encouraged to speak to their bank representatives about their concerns.
