Bring Back “Declined”

As many of you know, Bank of America made a bold choice to revamp their policy on overdrafts, again. It used to be that the bank would not allow you to withdraw money that you didn’t have. When purchasing items at the register, if you didn’t have the money, your bank card would be declined and you would not be allowed to purchase the items on that bank card. More recently banks began to allow the overdraft and would then charge the bank customer an overdraft fee. Well, now Bank of America has decided to re institute the use of that dreaded word, “declined”.

Honestly, I’m all for it! This change in policy is going to definitely do 2 things and maybe 1 more. What will happen is:

1) People will begin to monitor their available funds again because being declined in public is embarrassing.
2) Once folks start getting declined regularly they will start taking a closer look at their spending habits.

What may happen is, other banks may change their policies as well. Many people look at banks as if they are ones in control, not realizing that customers have many options and can vote with their dollars and choose to change banks. What will really blow your mind is that not only do you have the option to change banks…… you also have the option to move to a credit union.

I’m all about people making responsible decisions, however I’m not so blind that I don’t realize that institutions and options are also important in building wealth. Find a credit union in your area and go talk to a representative. I’m willing to bet that you’ll find a smaller organization that is more friendly and has better rates than where you are currently banking.

Thanks Bank of America for making a responsible decision that should have been made a while ago, maybe that decision will motivate other banks to do the same. If not … there’s always the credit unions!

PEACE