If you have a checking account or if you use a debit card, you might want to make a call to your bank and ask about overdraft fees.
Major banks are under attack for what consumer advocates call hefty fees on unauthorized loans.

Consumer groups point to what they say is a growing practice of automatically paying overdraft checks without your consent, then slapping you with huge overdraft fees.

The Consumer Federation of America says the practice is costing consumers more than $17 billion per year.

Write a check, pay online or use the debit card to make a purchase. If it turns out there there's not enough money in your account, be prepared for the transaction to go through anyway.

Your bank may be saving you from the embarrassment of bounced checks or rejected debit transactions by authorizing payment even when you don't have enough money in your account.

An automatic overdraft fee is taken directly of your next deposit.

The problem, according to consumer advocates, is banks are doing this without telling you they're going to do it. Consumer groups say the practice amounts to a loan. It's credit with no disclosure of how expensive that credit will be.

A survey of the top ten banks in the country found overdraft fees ranging from as low as $19 for the first overdraft, to a high of $37.50 for five overdrafts or more.

The survey found one in two banks have escalating fees for multiple overdrafts in one year. And two out of three of the largest banks in the country have no maximum for how many transactions can trigger an overdraft fee in one day.

Many banks also process the largest withdrawal first triggering additional fees when smaller transactions overdraw the account.

The Federal Trade Commission is proposing new rules on bank overdraft services. The proposal would require your bank to let you opt-out of the so-called overdraft loans.

But consumer groups say the proposal doesn't go far enough to protect you against fees and other charges that are too high and unfair.

So call your bank, verify the overdraft fees and make sure you're not on some automatic overdraft plan you didn't know about.

More information:

Mercy CorpsNational Consumer Groups Call for Truth in Bounce Loans