Told You So . . . Senator Dodd is Introducing a Bill Regulating Overdraft Fees.

If you haven't taken a look at your NSF and "Courtesy Pay" program in a while. This would be a good time to do so. . . you might be surprised at how much revenue you realize from these programs. And it all may change very soon. I don't mean to sound like a broken record (I've written several articles about this since July 1st, 2009), but you might want to come up with a plan to somehow replace potential lost revenue.

Here's what Sen. Dodd has to say “Excessive, automatic overdraft fees are forcing many American families deeper into debt at a time when they are already struggling to make ends meet,” . . . “I am working on a bill to protect consumers from these fees.” Representative Carolyn Maloney, chimed in “The evidence is overwhelming that bank overdraft fees are out of line, and that banks are milking their system for all it’s worth,” . . . “It’s time to crack down -- as Congress has already done with credit cards.”

According to Bloomberg, Dodd’s bill would require customers to “opt-in” to banks’ overdraft protection programs, prohibiting lenders from automatically enrolling their customers in the plans. It's not clear whether your current program will be "grandfathered" in.

Couple this with the letter that Democratic leaders sent to the Federal Reserve back in June 2009, and an abundance of horror stories from consumers (just do a search online, you will see what I mean), and I believe we will see some significant changes in NSF requirements soon.

Credit Union Bond Renewal. Do Some Homework.

Deciding which carrier to use for your Credit Union Bond can be a challenge. For several reasons, it would be a huge mistake to just automatically renew your bond with your current carrier. Number one is cost. I can speak from personal experience that you can save upwards of 30% for equal, possibly better, coverage just by shopping around. Just to put things in perspective; a $30 million credit union saved $9,ooo just by making a switch. The CEO testifies that claims were paid without a hassle and service was excellent.

But you just love your Rep, and you couldn't do that to him/her? If they are charging you 30% more than they should, they aren't doing you any favors.

Get several quotes, find out which services they offer, etc. When they discover that you are shopping around, your current carrier may miraculously find a way to reduce your premium. In any case, make an informed decision.

The NCUA has approved about a dozen carriers. A list can be found here: http://ncua.gov/Resources/AdministrativeOrders/Bonds.aspx

A personal story. I was having dinner with my wife and this guy walks in and loudly proclaims: " I think all insurance agents are crooks". A man quickly rushes up to the guy and shouts "You take that back!" The guy replies, "Why? ... are you an insurance agent?", the man, in a rage, hollers back, "No, I'm a crook".