Chase Cancelling Automatic Overdraft Protection

Here is an interesting little tidbit regarding Debit Card credit these days.

It seems that during the fat times, Chase Bank was automatically tacking onto their Checking/Debit Cards a form of overdraft protection. It was a simple line of credit that crept up over time (ours was $10k per account). If memory serves, there was no credit application, no credit request — it just was an option offered one day many years ago.

It worked as an automatic extension of credit — spend more than was in your account, and you did not bounce a check or get denied on a debit card purchase. You would be charged for an entirely separate line — a whole new account number, different invoicing and statements, etc. And, you could not pay it by depositing money into your checking account — you had to make a specific payment to that credit line.

Now, it seems, that Chase (part of JP Morgan) is becoming a bit tighter with their credit lines. You have to affirmatively request this line in person at a bank branch.

I assume the new credit card laws have something to do with this . . .

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