New overdraft protection rules

I saw some articles in the papers today regarding the new overdraft protection and credit card "laws." I don't fully understand or care at this time. I'm sure once I get dinged with some bullshit charge, I'll be up in arms about it and some customer service person is going to get an ear full. You can see different articles here, here and here while they last.

That being said. I did get some notice a few weeks or more ago about my bank and opt-in for overdraft protection. It's funny that I kept the paper in my backpack as I fully intended on commenting sooner. So, without further delay, some gloriously ignorant (IMHO) verbage from the "letter to loyal customer:"

You need to decide if you want to:

1. OPT-IN - This means you want [bank] to authorize and pay your one-time debit card and ATM transactions when there may not be enough money in your account to cover the transaction.
2. OPT-OUT - This means you DO NOT want [bank] to authorize and pay your one-time debit card and ATM transactions when it appears that there is not enough money in your account to cover the transaction.

Here are a few examples:

1. At an ATM: You have $80 available in your account and you use your debit or ATM card to withdraw $100 at the ATM.
• IF YOU OPT IN: We may, at our discretion, authorize and pay the withdrawal. This could result in an overdraft in your account, which means you may be charge an NSF Charge-Paid Item fee of $38.
• IF YOU OPT OUT: The transaction will be declined. You will only be able to withdraw $80 from your account. You will not be charged a fee.
2. At the convenience store: You have $2 available in your account and want to purchase coffee and a snack for $8 with your debit card.
• IF YOU OPT IN: We may, at our discretion, authorize and pay the transaction. This could result in an overdraft in your account, which means you may be charged an NSF Charge-Paid Item fee of $38.
• IF YOU OPT OUT: The transaction will be declined. You will be able to purchase $20 worth of items, or have to use an alternative form of payment. You will not be charged a fee.

So, my thought is if the person doesn't have the money, then the transaction should be declined from the beginning. If they can't pay $80 or $8, what makes the bank think they will be able or want to pay the $38 overdraft fee?

To me, this is basically enabling. The way a parent enables an adult child - adult child has a job but instead of pays his/her bills, gets a tattoo; adult child owes money for electricity or rent, asks parent for money and parent pays the bill; next payment time rolls around and the adult child has put them self in the same situation; parent pays again. Hopefully you get the picture.

Using an ATM/debit card isn't like writing a check that you can float. It won't work if you don't have the a greater balance of funds already in the bank than your purchase amount. After the fact clearing, is one thing but letting people use more funds than they actually have is just stupid. It's kind of why we are in the economic bust we are in: too many people who couldn't really afford a house, bought a house and now they have to foreclose. If we'd stop people from making stupid decisions in the first place, we wouldn't have to clean up after them.