Some may opt for debit over credit card debt - Bills.com News

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Some may opt for debit over credit card debt

Wednesday, Nov 11, 2009
By Jennifer Hewitt

There are a number of reasons why people may consider turning away from credit card debt, including the fact banks are changing terms in anticipation of new regulations.

As a result, some consumers may consider switching from using a credit card to a debit card. A recent story from California television station KXTV noted that many people have considered the switch. That number would include Sacramento resident Patti Poole of Sacramento,who was interviewed for the story.

"If they are going to charge me to spend my own money, then I will definitely go to a debit card," Poole told the television station.

Of course, debit cards are not without their own dangers. Numerous reports have noted that some banks are trying to make money off debit card accounts by enrolling people in overdraft protection programs, which cover transactions that go beyond what a consumer has in their account. As a result, account holders may be charged as much as $35 for being overdrawn
for even small purchases.

However, Connecticut Democratic Senator Chris Dodd recently introduced legislation that would require banks to get a customer's permission before enrolling them in an overdraft protection program.

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• Senator wants to move up CARD Act implementation Colorado senator is pushing his fellow congressmen to implement the Credit CARD Act in December. Oct 29, 2009

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