Information for Consumers
News You Can Use

NEW FED CONSUMER PROTECTION SITE
As part of its ongoing commitment to consumer protection, the Federal Reserve Bank of Kansas City has launched a new consumer protection website. The site features answers to the most commonly asked consumer questions related to banking and includes a link allowing consumers to ask specific questions. The site also offers a wealth of financial education tools. If consumers have a concern with a specific financial institution, the site will direct them to the appropriate regulatory agency to file a complaint.

http://www.kansascityfed.org/home/subwebs.cfm?subWeb=4

BUYING, GIVING, AND USING GIFT CARDS
Office of Thrift Supervision

What do you buy the person who has everything? Is a gift card your answer? This brochure provides information to consumers on buying, giving, and using gift cards. While traditional retail gift cards (issued by retail stores) remain popular, a growing segment of the gift card industry is gift cards issued by financial institutions. Gift cards may be issued directly by a credit card company such as American Express, Discover, MasterCard, or Visa or they may be issued by and carry the logo of banks, shopping malls or restaurants.

As gift cards can be the perfect gift, there are some things you need to know before buying one. Some cards may have expiration dates, and/or charge fees for non-use or monthly maintenance fees. Other costs associated with gift cards can include fees to buy the card, transaction fees to use the card, and fees to “reload” or add more money to the card.

Things to consider when buying gift cards include:

Card Usage
Be sure to check the gift card program terms and conditions for details regarding card usage. There may be some limits on where gift cards can be used. Can the card be used internationally as well as anywhere within the United States? Does the card allow the owner to withdraw cash at ATMs?

Gift cards issued by financial institutions typically can be used anywhere that the card issuer’s product is accepted, but there are some exceptions. For example, a mall card’s use is limited to the named shopping mall or mall chain.

A store specific gift card can be used to buy merchandise from a particular store and sometimes through its website. Not all gift cards can be used for online shopping, so be sure to ask.

A general- purpose gift card from American Express, Discover, MasterCard, or Visa may be used almost anywhere those cards are accepted; restrictions may apply for certain purchases such as airline tickets and hotels.

Expiration Dates
Does the card have an expiration date? Typically, the expiration date is listed on the card, the packaging, or the website if buying online. Some cards can expire as soon as six months after the date of purchase. If you receive a gift card, consider using it as soon as possible (at your convenience) to avoid any concerns regarding the expiration date.

Fees
The most common fees include inactivity or dormancy fees for non-use. These fees can drain the value of the card. For example, some issuers impose monthly fees after a card has not been used for a specified period of time. Is there a processing fee? Many cards issued by financial institutions charge a fee to purchase the card. Such fees can range from $2.50 to $9.95. Does the card issuer charge shipping and handling fees?

If the gift card can be used to obtain cash from an ATM, is there a fee associated with ATM usage?

Is there a monthly maintenance fee? Some gift card issuers begin charging a maintenance fee immediately while others may delay the monthly fee for a specified period of time. The fees will kick in automatically, whether the card has been used or not.

Be sure to check the gift card program terms and conditions for details.

Replacement Cards
Can a card be replaced if it is lost or stolen before a zero balance is reached? If so, is there a fee for replacement?

Since some card issuers require the original receipt and card number for the cardholder to receive a replacement, gift card givers should send the original purchase receipt and/or the card’s identification number with the card so the recipient can more easily obtain a replacement card. Be sure to find out what recourse you have, if any, if your gift card is lost or stolen, and guard your card accordingly.

It is best to treat any gift card as you would treat cash.

Balance Inquiry
Some card issuers allow the cardholder to check the balance remaining on the card via telephone or Internet.

Is there a fee to check your balance? If so, is the charge per inquiry?

You should consider tracking your balance as you use the card. Keep receipts for purchases made with your gift card in a safe place. That way you will know precisely how much value is left on the card. And the receipts will come in handy if your card is lost or stolen.

Add Value
Some card issuers allow the user to “reload” or add more value to the card. If this is an option, check to see if there are charges for reloading and limits on how many times the card can be reloaded.

Cash Redemption
Many gift cards are not redeemable for cash. And most general-purpose gift cards that offer to send you a check for your remaining balance generally charge you a fee to do so.

Split Payments
Can you make a purchase that is more than the available balance on the gift card? Some card programs allow use of another payment method (personal check, cash, or credit card) to share the expense of your purchase. This is called a split payment transaction. When making your purchase, remember to tell the merchant the dollar value on your card. Since the acceptance of split transactions is subject to individual merchant policies, ask the merchant before making your purchase.

Card Security
Don’t be a victim of scammers. Look for gift cards that are stored behind a counter. Make sure the gift card has not been tampered with, such as having been removed and then replaced back into the packaging or cardholder. Keep the receipt as proof that you paid for it. Immediately after buying a gift card in a retail store, ask the sales clerk to scan the card to make sure that the balance is correct.

Problems and Complaints
If you have a problem with a gift card, contact the card issuer. If you can’t resolve the problem at that level, you may want to file a complaint with the appropriate regulatory authorities.

For cards issued by federally chartered and state-chartered savings associations, their subsidiaries, and their registered savings and loan holding companies, you may contact the Office of Thrift Supervision (OTS) by calling the toll-free consumer number 1-800-842-6929;TTY Users call through Federal Relay at 1-800-877-8339; or visit www.ots.treas.gov.

For cards issued by retailers, contact the Federal Trade Commission at www.ftc.gov or call toll-free: 1-877-FTC-HELP.

You also may file a complaint with your State Attorney General (for a list of state offices, visit
www.naag.org).


AVOIDING CASHIER'S CHECK FRAUD
Comptroller of the Currency
Administrator of National Banks

Many consumers have become victims of scams involving a fraudulent cashier’s check. A cashier’s check is a check that is issued by a bank, and sold to its customer or another purchaser, that is a direct obligation of the bank. Cashier’s checks are viewed as relatively risk-free instruments and, therefore, are often used as a trusted form of payment to consumers for goods and services.

However, cashier’s checks lately have become an attractive vehicle for fraud when used for payments to consumers. Although the amount of a cashier’s check quickly becomes “available” for withdrawal by the consumer after the consumer deposits the check, these funds do not belong to the consumer if the check proves to be fraudulent. It may take weeks to discover that a cashier’s check is fraudulent. In the meantime, the consumer may have irrevocably wired the funds to a scam artist or otherwise used the funds – only to find out later, when the fraud is detected – that the consumer owes the bank the full amount of the cashier’s check that had been deposited.

This OCC Consumer Advisory on Avoiding Cashier’s Check Fraud gives you information on some common scams and some steps you can take to avoid becoming a victim. Although this advisory focuses on cashier’s checks, you may find the information useful if you transact business using other official bank instruments, such as money orders and official checks.

Common Scams
Each scam involving a fraudulent cashier’s check may be different, but some of the more common scenarios are:

Selling goods–You sell goods in the marketplace – for example, over the Internet. A buyer sends you a cashier’s check for the price that you have agreed on, and you ship the goods to the buyer. The cashier’s check turns out to be fraudulent.

Excess of purchase price–This scenario is similar to the one described above. However, the buyer sends you a cashier’s check for more than the purchase price and asks you to wire some or all of the excess to a third party, often in a foreign country. The buyer may explain that this procedure allows the buyer to satisfy its obligations to you and the third party with a single check. The cashier’s check turns out to be fraudulent.

Unexpected windfall–You receive a letter informing you that you have the right to receive a substantial sum of money. For example, the letter may state that you have won a foreign lottery or are the beneficiary of someone’s estate. The letter will state that you have to pay a processing/transfer tax or fee before you receive the money, but a cashier’s check will be enclosed to cover that fee. The letter will ask you to deposit the cashier’s check into your account and wire the fee to a third party, often in a foreign country.

The cashier’s check turns out to be fraudulent.

Mystery shopping–You receive a letter informing you that you have been chosen to act as a mystery shopper. The letter includes a cashier’s check, and you are told to deposit the check into your account. You are told to use a portion of the funds to purchase merchandise at designated stores, transfer a portion of the funds to a third party using a designated wire service company, and keep the remainder. The cashier’s check turns out to be fraudulent.

Scams also may involve other types of checks. For example, the fraudulent check may appear to be written on the account of a real person or company or be written on an account that contains insufficient funds to cover the check. Other scams involve fraudulent postal service money orders or fraudulent money orders that appear to have been issued by a bank.

The result of these scams is that the fraudulent check will be returned unpaid. The bank will then deduct the amount of the check from your account or otherwise seek repayment from you, and you will lose either the goods that you sold, the money that you sent to the third party, or both.

What is a fraudulent cashier’s check? A cashier’s check is a check issued by a bank and payable to a specific person. Because a cashier’s check is issued by a bank, itself, the cashier’s check is paid by funds of the bank and not the depositor. Therefore, if an item is genuine, there is very little risk that the instrument will be returned.

Sometimes, however, a cashier’s check is not genuine, and, if you unknowingly accept a fraudulent cashier’s check in exchange for goods or services, you will likely be the one who suffers the financial loss.

How can you tell if a cashier’s check is fraudulent? It can be very difficult for either you or your bank to tell. When you deposit a check into your account, your bank generally is required by law to make the funds available within a specific period of time (usually, one business day for a cashier’s check or other official instrument).This is true even if the check has not yet cleared through the banking system. Therefore, even if the funds have been made available in your account, you cannot be certain that the check has cleared or is “good.”

Your bank also may not be able to determine that the check is fraudulent when you deposit it. Rather, your bank may learn of the problem only when the check is returned unpaid by the other bank – which may take a couple weeks or more. Scammers try to make the item look genuine, which will delay discovery of the fraud. Once the item has been returned unpaid, your bank, generally, will be able to reverse the deposit to your account and collect the amount of the deposit from you.

What are your rights? If you find yourself in this situation, you ordinarily would have a remedy against the person who wrote the check. However, you will have great difficulty pursuing any remedy against these scammers, especially if they reside in a foreign country or have disguised their identities.

What steps should you take to protect yourself from becoming a victim of fraudulent cashier’s check scams? Keep the following tips in mind.

Tips for Avoiding Cashier's Check Fraud
Try to know the people with whom you do business. When possible, verify information about the buyer from an independent third party such as a telephone directory. Be cautious about accepting checks – even a cashier’s check – from people that you do not know, especially since it may be difficult to pursue a remedy if the transaction goes wrong.

When you use the Internet to sell goods or services, consider other options such as escrow services or online payment systems rather than payment by a cashier’s check.

If you do accept a cashier’s check for payment, never accept a check for more than your selling price if you are expected to pay the excess to someone else. Ask yourself why the buyer would be willing to trust you, who may be a perfect stranger, with funds that properly belong to a third party.

A cashier’s check is less risky than other types of checks only if the item is genuine. If you can, ask for a cashier’s check drawn on a bank with a branch in your area.

If you want to find out whether a check is genuine, call or visit the bank on which the check is written. That bank will be in a better position to tell you whether the check is one they issued and is genuine.

Know the difference between funds being available for withdrawal from your account and a check having finally cleared. Your bank may be required by law to make funds available to you even if the check has not yet cleared. However, it could take several weeks to know if the check will clear or not.

Act with Caution
Be wary of taking action before you can be sure that the payment you received is good.

Be suspicious if someone insists that you send funds by wire transfer or otherwise pressures you to act quickly before you know the payment you received is good.

If you receive a letter offering you a large sum of money for little effort other than sending a “processing” fee, remember: if something sounds too good to be true, it probably is.

Reject any offer that asks you to pay for a “prize” or “gift.”

Save your documents – you may need this paperwork if something goes wrong.

If You Have Become Victimized by a Fraudulent Check Scam, Please Follow These Guidelines:

Anytime a scam involves a cashier’s check, official check, or money order from a bank, and you believe that it could be counterfeit, you should contact the issuing bank directly to report receipt of the check and to verify authenticity. When contacting the bank, do not use the telephone number provided on the instrument, as this number is probably not associated with the bank, but rather with the scam artist. 

To locate a bank’s mailing address, you can check the FDIC’s Web site at: http://www2.fdic.gov/idasp/main_bankfind.asp.

In addition to contacting the appropriate banks, there are others whom you also should notify if you receive a counterfeit item. They include:

Scams, generally–Federal Trade Commission (FTC): by telephone at 1-877-FTC-HELP or file an electronic complaint via their Internet site at www.ftc.gov.

Internet-based scams–Federal Bureau of Investigation (FBI) Internet Fraud Complaint Center www.ic3.gov. 

Mail-based scams–U.S. Postal Inspector Service: by telephone at 1-888-877-7644, by mail at U.S. Postal Inspection Service, Office of Inspector General, Operations Support Group, 222 S. Riverside Plaza, Suite 1250, Chicago, IL60606-6100 or via e-mail at http://www.usps.com/postalinspectors/fraud/MailFraudComplaint.htm.

Finally, if you have a complaint or problem involving a check written on, or deposited in an account at, a national bank, and you cannot resolve the problem with the bank, contact the Office of the Comptroller of the Currency’s Customer Assistance Group by calling 800-613-6743 or by sending an e-mail to: customer.assistance@occ.treas.gov.

COMMUNITY BANKS OFFER FINANCIAL TIPS FOR WHEN MOTHER NATURE STRIKES

Mother Nature came calling early in 2006 when the first named storm—Alberto—hit the Gulf Coast in mid-June. The Independent Community Bankers of America (ICBA) has some tips to help individuals get their financial house in order should a natural disaster hit. 

Community banks were at the center of disaster relief and recovery during and after Hurricanes Katrina and Rita. Community bankers worked together to help ensure people’s safety and give them access to financial services. We learned a lot about how people can safeguard financial records in the event of a disaster.

ICBA offers the following financial preparedness tips to help consumers prepare for a potential natural disaster.

1. Keep marriage and family records, including adoption papers, property deeds, birth certificates, wills, insurance policies, passports, social security cards, immunization records, credit card account numbers, car title or lease contract, bank and investment account numbers, and three years of tax returns in a safe-deposit box.

2. It’s a good idea to make and safeguard official copies of critical documents such as birth certificates, adoption papers, marriage certificates and the deed to your home for safekeeping perhaps with an attorney.

3. Inventory and keep a list and photographs of household valuables.

4. Start and regularly contribute to an emergency fund that can cover at least three to four months worth of expenses. This fund should be separate from your savings or investment account.

5. Stash some extra cash with your emergency kit., which should include a three-day supply of water, food, a first aid kit, can opener, flashlights, radio and extra batteries.

6. Notify a trustee, close relative, or attorney where important financial information is located.

7. Identify the records that you keep only on computer. They may not be available if electrical power fails, so make a printout and safeguard them.

8. Keep names and contact numbers for executors, trustees and guardians in a safe place, possibly in your safe deposit box or with a close relative.

9. The web can serve as a supplement to paper copies. Scanned or other electronic documents can be attached to e-mails and stored in your e-mail account, or with secure online backup services.

“Having a financial plan in place can greatly improve someone’s ability to regain peace of mind when a natural disaster occurs,” adds Jorde.

For more information and resources, including a copy of an Emergency Preparedness Guide, visit the consumer education and resources section of www.icba.org.

GIFT CARDS
The Office of the Comptroller of the Currency has issued another consumer advisory providing important information that holiday shoppers should have about the terms and conditions that apply to gift cards. Some issuers deduct a monthly fee from the gift card or apply inactivity fees if the card has not been used for some period of time. Gift card holders may not realize the value of their cards has been reduced until they use them for a purchase some months after receiving them. The OCC suggests that consumers make sure they have received disclosures on some of the important terms and conditions of the gift card they purchase or receive, including:

• The fees, if any, which apply to the gift card, including those that apply after the sale that reduce the value of the card.
• The expiration date of the gift card.
• The procedures to follow in the event a card is lost or stolen.
• The locations at which the gift card can be used.
• The procedures to follow in the event there are problems with the gift card.

If these disclosure are not stated on the gift card itself, or its packaging, the OCC suggests that consumers check to see if there is a toll-free number or web site that will provide this information. Consumers are encouraged to read "OCC Tips for Consumers This Holiday Season." The consumer advisory can be found at the following link: http://www.occ.treas.gov

CHECK 21
CONSUMER GUIDES

The Federal Reserve Board announced the publication of two new consumer guides that provide practical information on the changes resulting from technological advances in check processing. Technological innovation is allowing for checks to be collected and processed more efficiently, reducing the time and resources dedicated to handling, sorting, and transporting checks. A federal law known as the Check Clearing for the 21st Century Act (Check 21), which took effect today, makes it easier for banks to electronically transfer check images instead of physically transferring paper checks. Check 21 does not require banks to accept checks electronically, but it facilitates electronic transmission between banks by providing a way for banks that clear checks electronically to exchange information with those that do not.

Under Check 21, banks would be able to stop the flow of paper checks, process them electronically, and create machine-readable "substitute checks"--paper copies of the front and back of original checks--when a paper check is needed. Check 21 requires banks and consumers to accept substitute checks in place of original checks in the check collection or return process. It does not require that bank customers stop receiving paid checks in their account statements, although these checks may be either the originals or in the form of substitute checks.

The "Consumer Guide to Check 21 and Substitute Checks" describes how consumers may be affected by the new law and provides information on how to resolve problems associated with the receipt of substitute checks.

A second consumer guide, "What You Should Know about Your Checks," discusses more broadly how check payments have changed, including the increased use of electronic check conversion, a process separate from Check 21. In the check conversion process, a consumer authorizes the use of information from their paper check to make an electronic payment at the point of sale or when paying a bill by mail.

Both brochures stress that because payments might be processed faster, when a check is written, the money may be deducted from a consumer's checking account sooner. As a result, consumers should be sure they have enough money in their account to cover the amount of their check.

The "Consumer Guide to Check 21 and Substitute Checks" is available on the Board's web site at: http://www.federalreserve.gov/. "What You Should Know about Your Checks" is available at: http://www.federalreserve.gov/. These publications are also available from the Federal Reserve Board's Publications Fulfillment, Mail Stop 127, Washington, DC 20551, 202-452-3244.

INDIVIDUAL DEVELOPMENT ACCOUNTS
Corporation for Enterprise Development (CFED). CFED promotes asset-building and economic opportunity strategies, primarily in low-income and distressed communities, that bring together community practice, public policy, and private markets. CFED has promoted the IDA as a means of enabling low-income individuals to develop assets and is currently drafting certification standards for IDA Programs. CFED coordinates the American Dream Demonstration (ADD), a large-scale IDA program which has designed and implemented IDA initiatives in 13 locations around the country.

Assets for Independence Demonstration (AFI). The AFI Demonstration is the first federal law to fund IDA programs. Administered by the U.S. Department of Health and Human Services, this initiative has been authorized to conduct a 5-year, $125 million demonstration to establish 40,000 to 50,000 new IDAs across the country.

RETIREMENT AND FINANCIAL SECURITY
Retirement Savings Education Campaign - Saving Matters-Department of Labor, Employee Benefits Security Administration. "Saving Matters" is the slogan of the Retirement Savings Education Campaign sponsored by the Department of Labor's Employee Benefits Security Administration. The campaign's signature brochure, "Top Ten Ways to Beat the Clock and Save for Retirement," describes basic steps individuals should take to ensure their financial security.

National Summits on Retirement Savings - Department of Labor, Pension and Welfare Benefits Administration. As directed by the SAVER Act, the Department of Labor's Pension and Welfare Benefits Administration coordinates the National Summit on Retirement Savings, co-hosted by the President and the Congressional leadership in the House and Senate. Summits have been held in 1998 and 2002; the next Summit is scheduled for 2005. The purpose of the Summit is to increase public awareness of the importance of retirement planning and to identify ways to promote greater retirement savings by all Americans.

Consumer Federation of America (CFA) America Saves Campaign. CFA is developing locally based campaigns to publicize the value of building savings and reducing debt to Americans who have not saved adequately. Local offices of the U.S. Department of Labor provide support on each campaign, and U.S. Savings Bonds are one of the savings products promoted. America Saves involves local non-profit, government, and business leaders in each campaign.

Choose to Save Education Program. Sponsored by the Employee Benefit Research Institute and the American Savings Education Council, this public education campaign on retirement savings has run for three years in the Washington, D.C., metropolitan area. The campaign includes a series of public service announcements, weekly news segments, and an annual one-hour prime time television special.

ELDER ABUSE RESOURCES
www.17thjudicialdistrict.com/elder_abuse.htm

The Seventeenth Judicial District, in conjunction with the Colorado Attorney General's Office, local law enforcement agencies, the Adams County Department of Social Services, the City and County of Broomfield Department of Health and Human Services, and other interested parties, have joined together to better coordinate services and develop policies or protocols to assist in the prevention of the abuse and exploitation of senior citizens. The Elder Abuse Committee of the Seventeenth Judicial District Family Violence Coordinating Council has developed a series of posters and other informational resources aimed at assisting this process. Additionally, the Elder Abuse Committee is endeavoring to better assist law enforcement, social service agencies, financial institutions and others identify and prevent the exploitation or abuse of the elderly. This page includes a listing of known resources and contacts for information regarding Elder Abuse issues. The resources and information contained on this page will be periodically updated to make certain that recent information or developments will be readily available to interested persons.

THE FEDERAL RESERVE BOARD OVERDRAFT AND BOUNCED-CHECK FEES

How can you avoid overdraft and bounced-check fees?

• The best way to avoid overdraft and bounced-check fees is to manage your account so you don't overdraw it.
• Keep track of how much money you have in your checking account by keeping your account register up-to-date. Record all checks when you write them and other transactions when you make them. And don't forget to subtract any fees.
• Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments.
• Don't forget about automatic bill payments you may have set up for utilities, insurance, or loan payments.
• Keep an eye on your account balance. Remember that some checks and automatic payments may not have cleared yet.
• Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling your bank or by checking online or at an ATM. Be sure to find out the actual amount in your account--your account balance not including any funds available to you through
• courtesy overdraft-protection,
• or
• bounce coverage,
• plans.
• Sometimes mistakes happen. If you do overdraw your account, deposit money into the account as soon as possible to cover the overdraft amount plus any fees and daily charges from your bank. Depositing money into your account can help you avoid additional overdrafts and fees.

What are "courtesy overdraft-protection," or "bounce coverage," plans? Many banks (as well as savings and loans and credit unions) offer "courtesy overdraft-protection," or "bounce coverage," plans so that your checks do not bounce and your ATM and debit card transactions go through. With these plans, you'll still pay an overdraft fee or a bounce coverage fee to the bank for each item. But you will avoid the merchant's returned-check fee and will stay in good standing with the people you do business with.

How much do courtesy overdraft-protection, or bounce coverage, plans cost? Plans vary, but most banks charge a flat fee (often $20 to $30) for each item they cover. And many set a dollar limit on the total amount your account may be overdrawn at any one time. For example, the bank might cover overdrafts up to a total of $300, including all the fees. In addition, some banks charge a daily fee--say $5 a day--for every day your account is overdrawn.

Example: Suppose you forgot that you had only $15 in your account and wrote a check for $25, used an ATM to get $40 cash, and used your debit card to buy $30 worth of groceries. In these 3 transactions you've spent a total of $95--and overdrawn your account by $80 ($95 - $15 = $80).

How much will your forgetfulness cost you? If you have a courtesy overdraft-protection plan, your bank may decide to cover all 3 transactions. And each of the 3 overdrafts will trigger a fee. You will owe your bank the $80 that you spent even though it wasn't in your account, plus the 3 overdraft fees. If your overdraft fee is $25 per overdraft, you will owe your bank $155: $80 + $75 (3 x $25).

What are some other ways to cover overdrafts? Banks, savings and loans, and credit unions may provide other ways of covering overdrafts that may be less expensive. Ask your bank about these options before making your choice. You may be able to:

• Link your checking account to a savings account you have with the bank. If you overdraw your checking account, the bank can transfer funds from your savings account to your checking account. Ask your bank about transfer fees.
• Set up an overdraft line of credit with the bank. You need to apply for a "line of credit" just as you would apply for a regular loan. If you overdraw your account, the bank will lend you the funds by using your line of credit to cover the overdraft. You will pay interest on this loan, and there may be an annual fee. But the overall costs may be less than the costs for courtesy overdraft-protection plans.
• Link your account to a credit card you have with the bank. If you link your account to a credit card, any overdraft amount becomes a cash advance on your credit card. You will probably be charged a cash-advance fee, and interest charges on the advance will start immediately. The cost of this option depends on the interest rate on your credit card and how long you take to pay back the advance.

The choice is yours. Consider these ways to cover your overdrafts:

Ways to cover your overdrafts	Example of possible cost for each overdraft*
Good account management	$0
Link to savings account	$5 transfer fee
Overdraft line of credit	$15 annual fee + 12% APR
Link to cash advance on credit card	$3 cash-advance fee + 18% APR
Courtesy overdraft-protection plan	$20 to $30
Bounced check	$40 to $60 ($20 to $30 bank fee + $20 to $30 merchant fee)

These costs are only examples. Ask your bank, savings and loan, or credit union about its fees. What do you need to know about courtesy overdraft-protection, or bounce coverage, plans? Avoid using these plans as short-term loans--they are costly forms of credit.

If you overdraw your account, get money back into your account as soon as possible. Remember that you need to put enough money back into your account to cover both the amount of your overdraft and any bank fees.

Even if you have one of these plans, there is no guarantee that your bank will cover your checks, ATM withdrawals, and debit card and other electronic transactions that overdraw your account.

Good account management is the lowest-cost way to protect your hard-earned money. If you need overdraft protection every now and then, ask your bank about the choices and services that are right for you.