Debit or credit? People who opt for debit may think they’re spending only money they have, but banks now allow customers to exceed balances and charge overdraft fees. With a new law that limits credit card fees, some media sources say banks are finding other ways to make money.

We take a look at perspectives from The New York Times, The Faster Times, The Record, ABC News and MSNBC.

The New York Times reports that this year alone, banks are expected to bring in 27 billion dollars on overdraft fees. It speaks with consumer Adam Rainy who says the steep charges on debit card overdrafts are unfair.

“It seems an easy way for a bank to make several hundred dollars off one customer. And if you multiply that by hundreds of thousands of tens of thousands of customers, that’s a lot of money banks are making off of what seems to be legalized robbery.”

But a writer for The Faster Times says consumers should be responsible for managing their money.

“Instead of looking at the fees merely as a source of revenue for strapped banks (which they are), shouldn’t we also see them as a teaching tool? I remember how shocked I was the first time I paid an overdraft fee; it didn’t happen too often after that.”

But The Record disagrees, saying banks are abusing the system. It reports that U.S. Senator Charles Schumer is cracking down on banks by proposing to curb debit card overdraft fees. It quotes Senator Schumer.

“Bottom line, debit cardholders are getting scammed by their banks”

“It's time to stop them dead in their tracks. This legislation will… prevent banks from rearranging charges so that customers are placed in the worst possible position.”

A reporter on ABC News says the overdraft fees on debit cards are outrageous.

“According to Consumer reports, a typical overdraft fee on a debit card purchase translates to an annual interest rate in excess of 1 000%”

MSNBC speaks with a consumer editor who provides a solution to overdraft woes by suggesting that we go back to basics.

“How about if you just take out cash at the beginning of the week? You know what you are spending. You sort of have a more real relationship with your shopping. And you know you are not going to have any overdraft problems.”
“That’s right, cash is king.”
“Cash is king.”

Our research shows the media are both blaming banks and telling consumers to be more responsible. We want to hear what you have to say.