WASHINGTON – While Congress passed legislation that now prohibits automatic overdraft protection, the American Bankers Association (ABA) says that consumers want it back.

New federal regulations took effect August 15 requiring banks to get permission from customers before paying debit card overdrafts and then charging fees, which typically averaged $35 per overdraft.

The ABA sponsored a survey in which they report that about half of all Americans – 46 percent6, to be exact did — or will — opt in to their bank's overdraft program, and that they are willing to pay a fee for the service.

“These results show that many bank customers value debit card overdraft protection and are willing to pay for the service,” ABA Vice President Nessa Feddis said a press statement.

The banks have long argued that consumer want overdraft protection to avoid the embarrassment of having a card denied at the point of sale.

According to the press release, survey respondents were informed that banks can no longer charge a fee for covering overdrafts when they use a debit card unless the customer tells the bank in advance that they want overdraft protection and are willing to pay a fee for the service. They were also informed that if they did not choose to opt in for overdraft protection, their transactions could be denied if their account was overdrawn. They were then asked whether, based on that knowledge, they will choose — or did choose — to have overdraft protection.