Banks and Overdraft fees

Pauly

http://news.yahoo.com/s/ap/20091112/ap_on_bi_ge/us_fed_overdraft_fees



Bout time.

Up to 38 million just in OD fees.


FARK

Pauly

hearingimpared

The mafia has nothing on banks.

dkg999

The sad thing is that when the banks run customer profitability analysis the customers who pay lots of fees for overdrafts and other ooopsies sort to the top as the best customers and wind up getting some good perks also.

The same thing is happening to credit card customers.

concealer404

Why can't people just keep track of their finances and known when they've hit the bottom of their barrel, and just NOT buy something that will result in a fee?

thuffman03

I am not sorry for anyone who overdraws their account. People need to mind their checking accounts better. I know exactly how much money I have in my accounts. I have not had an overdraft fee in almost 20 years.

People need to set up and take responsibility for their actions. We do not need more government regulation to protect ourselves from the fact most people don't know how to balance a check book.

concealer404

These people should know what overdrafting does in terms of fees. If they choose to let the bank take $25 or whatever, then fine. Banks laid out the terms, if people can't keep track of their ****, let the banks capitalize on that.

dkg999

I try to keep track also, but sometimes between being busy at work, events with the kids, life in general, I lose track and have an over-draft every once in a while. I pay for the premium account level at my bank so I have overdraft protection. If it costs me $30 once a year or so, it's just not that big of deal. More important things in life to worry about.

steveinaz

I'm severely anal with my accounts and money. I have a budget ledger I've run since 1984, and use Microsoft money for checking/savings. I check my accounts practically every day.

shack

The WIN is...the transaction will be denied...at no charge on ATM and Debit cards. A insufficient check will still be returned and the fee will still be charged for returning the check or paying the check into overdraft status.

This is ONLY about ATM and debit card transactions.

LessisNevermore

thuffman03 wrote: »

I am not sorry for anyone who overdraws their account. People need to mind their checking accounts better. I know exactly how much money I have in my accounts. I have not had an overdraft fee in almost 20 years.

People need to set up and take responsibility for their actions. We do not need more government regulation to protect ourselves from the fact most people don't know how to balance a check book.

While I agree mostly, I know what it's like to live from payday to payday. The banks have changed their practices to facilitate more fees, aka: money grab.

I remember the days when you deposited a pay check, and it was credited to your account on the spot. Now they delay the deposits until the end of the day, until all debits of your account have been subtracted, giving ample time to overdraw the account, even though you made a deposit first thing that morning. Yes they are perfectly in their rights to do business that way, but it's still a crappy way to treat customers.

That's why I bank at a credit union, they still value my business and want to keep it.

steveinaz

Here's something to be careful of that happened to my assistant:

Him and his wife got some pizza at the local mall, and the meathead behind the counter accidentally totaled the order to $162.40, instead of $16.24. Luckily they had enough money to cover it, but it took 2 WEEKS for the credit to show back up on their account. Good thing they didn't need that money.

Good thing they caught the error immediately. Moral of the story, make sure to check your reciept; and keep a cushion available if possible. Also keep in mind that even when they do a so-called "reversal" on the charge, on the spot, it doesn't mean its been credited to your account.

mmadden28

I have overdraft protection on my account - No fees, No yearly fees. Comes in handy from time to time. However its very dangerous when you have an audio addiction.

steveinaz

I also have overdraft protection thru my credit union. If my checking were to fall short, they pull it from my savings. I have never needed it, but it's good to know I have it.

PhantomOG

steveinaz wrote: »

Him and his wife got some pizza at the local mall, and the meathead behind the counter accidentally totaled the order to $162.40, instead of $16.24. Luckily they had enough money to cover it, but it took 2 WEEKS for the credit to show back up on their account. Good thing they didn't need that money.

that's *exactly* the point I was trying to make in the old credit card thread and you refused to acknowledge that credit cards were safer.

it is still beyond me why people think debit cards are in any way better than a credit card.

steveinaz

Their situation is different from mine. I have overdraft protection (no fee for use) and plenty in savings to cover practically any mistake. I'm against credit cards because I don't care for their tactics or the way they do business.

You do whatever you want, and I'll do the same--that OK with you?

AsSiMiLaTeD

You guys wouldn't believe me if I told you some of the scenarios I've seen with people and how they manage their money. And coming from me, a guy who's not great at managing his money, that's pretty sad.

Like one guy I work with, we both bank at Wells Fargo. They apparently have this policy where they'll give you a $500 advance on your next direct deposit, but the interest rate is 10%, and they take that money back out every time you have a direct deposit.

So about two years ago he ran into a snag and took that 500 out. Well he gets paid every other week, so two weeks later they took the 500 plus the 50 finance fee out, and then he took the 500 out again.

Guess what, he's been in that cycle for 2 YEARS! He's paying $1200 a YEAR for this service, when all he has to do is just not take the $500 out after one check, but says he lives so tight on money that he can't afford to do that.

How ridiculous is that, I swear that has to be the dumbest thing I've ever heard of!

potee

I don't pay interest or bank fees if I cant aford it out of my pay I take money from savings and make payments to my self. I realize that I'm lucky to be able to do this, But I did without for a lot of years to get here.

Face

I've never used an ATM or Debit card.

dudeinaroom

Twice in the last two years I have ended up with over draft fees. The first time was due to stuff being processed out of order (deposited check, but was not credited until the next day even though the transaction was made at the start of the day) with fees being acquired for that days transactions. A couple of weeks ago I had $20 bucks less in the bank than I thought. I had a total over draft of 19 dollars and some change. It ended up being 4 overdrafts one for under 3 dollars. 2 for under $5 and one for just under 10. The fee for my just under $20 dollars of over drafts was $120. If that would have been a loan it would have been over a 500% interest rate. The worst part about it is I never asked for any type of overdraft protection, never wanted it, and their is no way to opt out of it.

m00npie

Face wrote: »

I've never used an ATM or Debit card.

Do you get your cash from contraband?

John30_30

concealer404 wrote: »

Why can't people just keep track of their finances and known when they've hit the bottom of their barrel, and just NOT buy something that will result in a fee?

Yeah, screw them for wanting some food for their kids to eat.

shack

John30_30 wrote:

Yeah, screw them for wanting some food for their kids to eat.

Yeah...like that's why most of the overdrafts occur....:rolleyes:

concealer404

John30_30 wrote: »

Yeah, screw them for wanting some food for their kids to eat.

Seriously?

John30_30

shack wrote: »

Yeah...like that's why most of the overdrafts occur....:rolleyes:

Not sayin' most, but it did to me. Sometimes just because a contractor took his sweet time paying for a completed job....or the bank would dick around giving him the draft for that stage.
It was either than or take a gun into a 7-11 or a bank. Which I didn't do.

I've got no sympathy for **** who buy lots of toys until they're in a hole. That's different. Poverty in this country is humiliating.

tonyb

Another fine example of our ills being someone elses fault. Always has to be a villian to blame for your screw ups.

bigaudiofanatic

concealer404 wrote: »

Why can't people just keep track of their finances and known when they've hit the bottom of their barrel, and just NOT buy something that will result in a fee?

Well when your 17 and your get your first second and third cc and think it is cool to buy whatever you mess up. I am dealing with that now and I am 21. I have 2 paid off but still working on the others. Should of never got them but than again if I did not get laid off that would of helped as well.

SKsolutions

That's 38 Billion, with a 'B'.
Some banks have taken to manipulating the order of clearing, and what is displayed as a balance, in order to trigger more of these fees. Sounds pretty deceptive, even for these parasites. I love the Leg-Breaker -- 'you can't opt out' aspect too.

Think there would be a few more jobs out there if this 38 Billion was spent back into the economy instead extracted by these parasites?

cfrizz

I'm beginning to think that a basic course needs to be taught in schools on how to balance a checkbook....Nevermind that would mean that people would have to be responsible for themselves. Which will never happen.

Most of the time, banks/credit card companies can only get away with what you let them get away with. If you keep track of what you are spending and live within your means you will be just fine.

Of course this scenario does not cover dumb **** kids with no common sense or getting laid off.

bigaudiofanatic

cfrizz wrote: »

I'm beginning to think that a basic course needs to be taught in schools on how to balance a checkbook....Nevermind that would mean that people would have to be responsible for themselves. Which will never happen.

Most of the time, banks/credit card companies can only get away with what you let them get away with. If you keep track of what you are spending and live within your means you will be just fine.

Of course this scenario does not cover dumb **** kids with no common sense or getting laid off.

:rolleyes:HMMM thanks for that.

Matt34

Does it not surprise anyone when our government is such a shining example to all on how to balance a budget. Of course we don't have the option of just printing more money.:rolleyes:

cfrizz

bigaudiofanatic wrote: »

:rolleyes:HMMM thanks for that.

Sorry if the truth hurts. But take comfort in the fact that you aren't the only kid that was targeted by these companies. They KNOW that kids fresh out the house with their first taste of freedom means they rack up BIGTIME since most kids DO instead of THINK things through.

If I didn't have a mother who showed me the ropes of living within my means even when I still lived at home, and see for myself just how sleazy these card companies are I would probably been in the same boat.

Back in 82, when my Dad was dying of cancer, Mom wanted to pay off all of the high bills since she knew she didn't/wouldn't have that kind of money after Dad passed. She sent out 2 checks to one of the CC companies. They called her to say that they LOST the $1000.00 check & could she send them another!

Needless to say, Mom waited until she got her canceled checks back & sent them a copy of the CASHED check. Then told them what they could do with their card!