Here is an interesting question: How do you make money from people who don’t have money? Answer: You charge them more money for not having money.

That is what some banks are doing when they charge customers overdraft fees.

A recent study by SNL Financial and CNN money shows that America’s largest banks – JPMorgan Chase, Bank of America and Wells Fargo – collected a whopping $6 million from overdraft and ATM fees alone.

Interestingly, the Federal Reserve instituted a new rule in 2010 that forbade banks from auto-enrolling its customers into overdraft protection.

This move was intended to cut back on the amount of overdraft fees consumers were being charged.

What Is Overdraft Protection?

More than half the people who overdrafted in 2014 didn’t recollect signing up for their bank’s overdraft protection program, according to a survey by Pew Charitable Trusts.

If a bank charges a consumer an overdraft fee when that consumer did not sign up for such “protection,” the consumer could have a legal claim against the bank.

“Overdraft protection” is when a bank allows a person to make debit card purchases or ATM withdrawals even if there are insufficient funds to cover the transactions. The SNL Financial and CNN Money study determined the average overdraft fee to be $34.

What Is the Alternative to Overdraft Fees?

If a person does not have overdraft protection, the intended transaction is simply declined.

The majority of consumers surveyed in the Pew Study said they would prefer to have a transaction declined rather than pay an overdraft fee. More than two-third of them, or 68 percent, said they would rather avoid the overdraft fee.

Realistically, paying for a $10 lunch with a debit card that results in a $30 overdraft fee is a hard pill to swallow.

Eighty percent of those surveyed who had overdrafted said they thought overdraft fees should be further regulated.

No One Size Fits All

Overdraft fees vary from bank to bank, so it is best to become familiar with your bank’s policies.

For instance, First BanCorp, has an extensive policy regarding its overdraft fees in comparison to other financial institutions.

In fact, it may be one of the more confusing and costly overdraft protection programs as there is no cap to the number of overdraft fees that can be assessed daily per transaction.

According to First Bancorp’s website, the bank charges an overdraft fee of $35 per each overdrawn transaction with no cap on the number of daily assessed fees.  Furthermore, First BanCorp also assessed overdraft fees for lines of credit, credit cards, and deposit accounts as well.

More Information Is Your Best Protection

Most major U.S. banks offer a low-balance alert program. Usually, the consumer chooses a dollar amount that once the account is below that pre-determined figure, the consumer receives a text message and/or an email alert.

By becoming aware of a low balance, a consumer can proceed with caution with making purchases or withdrawals.

In the meantime, laws and regulations could be changing in the future that may affect First BanCorp overdraft practices.

In February 2016, the Consumer Financial Protection Bureau’s director, Richard Cordray, said his organization is “encouraging banks and credit unions to offer the choice of enrolling in deposit accounts that are designed to help consumers manage their spending and avoid overdrafts and fees.”

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