VELSHI: Time now for "The X-Y-Z of It," and it centers on the ATM or really anywhere you might whip out a debit card and spend money from your bank account. It won't shock you to learn that that whole lot of people accidentally or otherwise spend money that they don't have in their bank accounts. And typically, banks let them do it, then they slap them with an overdraft fee of about 30 bucks. Well, now comes word from country's largest bank, Bank of America, that it's going to ditch those overdraft fees on debit card purchases. Well, things were going to change anyway, new Federal Reserve rules take effect this summer that will stop banks from automatically enrolling customers in overdraft protection. Those protections cost debit card users dearly and they generate massive profits for the bank. A report from research firm Moab Services says banks earn a record $38.5 billion in overdraft fees last year. Bank of America said this, debit card purchases that push checking accounts into the red simply won't be processed. They will be declined unless you've set up a overdraft protection plan yourself. It won't be automatic. If you try to take out more money out of an ATM than you have, an alert will pop up warning you that you'll pay $35 for the privilege and you can chose to continue or stop. Customers who like overdraft privileges can still get them; those who don't, won't. These fees, by the way, have been one of the most common gripes here at CNN. Why didn't the banks scrap them sooner? Late last year, they moved a little bit, but let's face it, it's easy for them and no one was forcing them to stop raking it in. Banks and profits, that's easy to understand. The other side of the equation is trickier, it's personal responsibility. Spending more money than you have has become the American way, but if you max out the checking account, not only will nobody stop you, somebody is going to make money off of it. If the real cost of free spending becomes clearer to more people, I suspect that everybody will profit. I'm Ali Velshi, and Rick is next with "RICK'S LIST."
The X-Y-Z of It: Bank of America's New Policy