Guest post by Jon Allen, Chief Compliance Officer, Bank of American Fork
This year we’ve been talking a lot about being fiscally fit—we’re always doing our best to help you be financially healthy by offering products that do have value and don’t have “gotchas,” and we’re also here to help you understand how you can use bank products healthfully.
One product that can be valuable to responsible consumers is Bounce Protection. However, used irresponsibly, Bounce Protection is a bad idea.
What does it mean to use Bounce Protection responsibly?
Like many of the things that help us stay physically fit, the key is moderation. Use Bounce Protection for emergencies or as a backup for the times you make a mistake in keeping track of how much money you have in your account—it happens to everyone sometime. You’ll avoid bouncing a check or having your card declined.
We recommend that you don’t use Bounce Protection for everyday purchases. For example, if you use Bounce Protection on a $3 bottle of water at the gas station because you just really want it now, even though you know you don’t have $3 in your account, you’re really paying $28 for that bottle of water (counting the $25 it costs to use Bounce Protection). It would be better to wait and buy that bottle of water once you have $3 in your account.
For frequent use, we recommend one of these less-expensive alternatives to Bounce Protection:
• Using your cash instead of borrowing
Bounce Protection is a great product for occasional, responsible use. We’ll keep creating and offering products that are healthy for you. We’ll keep trying to help you know how to use our products healthfully. When you use our healthy products in a healthy way, it will help you stay on track for a fiscally fit life.
If you have questions about Bounce Protection or any other products, call 800-815-BANK.
Bounce Protection is a registered trademark of Jack Henry & Associates, Inc.
Jon Allen (B.S. Brigham Young University, J.D. University of Idaho), is an attorney and a certified regulatory compliance manager and teaches a finance class as an adjunct at Utah Valley University. Before becoming Chief Compliance Officer at Bank of American Fork, he was a commercial and consumer loan officer at Capital Community Bank.