Whenever you open up a checking account, a savings account or a credit card you will receive a pamphlet of some sort with a lot of fine print. You may additionally receive updated pamphlets in the mail from time to time. Most people either toss these or file them without reading them, but it is important that you understand what they say.
When you open up an account at the bank, you are establishing a relationship and the pamphlets are like a contract that explains the rules of conduct between you and your bank. They explain the services offered, what is expected of you as a customer and what will happen if you break any of the terms of service. They also explain the fees associated with the account and the steps that the bank will take in the event that you overdraw or in anyway break the guidelines that are established.
Recent changes to the credit card industry have caused the banks to make changes in their user agreements. It is important that you take the time to read the changes that are happening now as well as the pamphlets that you will read in the future. It is also important that you understand the terms and conditions associated with your account and how it works.
For example, the bank will explain how overdrafts are handled and how many you are allowed in a certain period of time. They will also state how many days you are allowed to let your account be negative and the fees that are associated with this. Most people realize that they are charged an overdraft fee if they overdraw, but they do not realize that there is an additional fee charged each day you are overdrawn. (Not all banks are the same so you should read your fine print.)
This statement should also explain the holds policy. It should give you a general understanding of what will happen if you make a large deposit at your bank. There are several sets of rules that do not occur to most people, and they are addressed with the statement.
Looking over this each time you get it will help you to understand what will happen if you do not keep your account in good standing. You can look at as an explanation of worst-case scenarios. You should also keep these on hand so that you can refer back to it if you have any disputes over charges and fees. It should be dated, so you can tell how far back it applies.
Finally, if you receive one of these in the mail you should read over it. If you feel that the changes being made are unfair or unacceptable, then you may be able to opt out of the changes or you can move your business elsewhere. Your bank is in the business of providing you a service, you are not trapped at your bank. If you have your account in good standing it should not be difficult to find a good bank that will provide with reasonable terms and conditions.
