Beware New, Hidden Bank Fees

Many banks are giving consumers a new type of overdraft protection that they call a "courtesy," but which is really a short-term loan that, in some cases, carries a hefty pricetag.

The loan covers withdrawals when the consumers' checking accounts come up short.

The Consumer Federation of America and the Consumers Union, which released a study on the product, estimate that they have interest rates at least four times greater than most other loans.

Gibbons tells The Early Show co-anchor Hannah Storm that banks "automatically attach" the courtesy overdraft provisions to checking accounts.

"It's not something you sign up for," Gibbons says, "it's not something you volunteer to sign up for. It happens automatically. Consumers are pretty much surprised about this.

"It occurs, kicks in when you bounce a check, when you go over on your debit card, even when you take out more money than you've got (in your account from) the ATM."And it's a prevalent practice, Gibbons notes: "Something like 80 percent of the nation's largest banks are doing this, according to the Consumer Federation."

How high are the fees?

"It starts with a basic fee of $28 per overdraft," Gibbons points out. "Then they could get you on additional fees if you're late paying them back. In the end, it could be $36, $37 per overdraft transaction."

"The problem is," Gibbons explains, "banks are up against a tough environment. It's a low-interest-rate environment. The profit margins on loans are shrinking. This is an easy way for the banks to make money, and they're bringing in anywhere from $10 billion to $22 billion a year" this way.

The usual targets are cash-strapped individuals, low- to middle-income individuals such as those making between $25,000 and $50,000, and college kids.

Gibbons says you could call your bank today to see whether you have courtesy overdraft connected to your checking account and demand that it be disconnected. Or you could check your statement closely to make sure you don't get hit with fees from such loans.

"If you see these fees on your statement," Gibbons advises, "call up your bank and say, 'I don't want this courtesy. It's not a courtesy. Thanks, but no thanks.'

"They may take the first fee off the statement if you put up enough of a stink. But just tell them, from now on, no more."

Checking statements more carefully is a particularly good idea, Gibbons says, in light of "Check 21," the new law that has checks clearing faster but doesn't have deposits moving along more quickly.

You can also get standard overdraft protection, Gibbons suggests. That has much lower fees than the new courtesy overdrafts.

Also, try to build up your savings account "so that if you do get standard overdraft protection and you don't have the money in your checking account, you've linked it to your savings account, and you're set."