Banks and overdraft fees

I am usually pretty good when it comes to my money, but there are sometimes when I make a mistake. This is the first time on this account, and I have had it for over a year. A store did not put through a charge, and I used my debit card purchasing a birthday present. I was over my account by less than $2 when the older store charge finally went through.

Now, I do agree that it was my fault, as I should of written down the charges (which I do now to all charges), but I was in sticker shock when I recently looked at my statement. There was a $25 overdraft fee, plus a $33 overdraft charge, and another $39 over draft limit fee. Not only that, but the account was charged $6 per day it was overdrawn. That is $94 the bank ate (plus the $6 a day charge) for a $2 mistake. I admit, I accept the $25 fee for the mistake, but I do think the other charges are over kill. I do not normally do this type of thing, and I am now very careful it will never happen again. I am on a fixed income, and every penny counts as the prices around here have gone up drastically.

This may be a silly rant to some people, but how many here think $94 is a bit high for one mistake?

(Update: I went into the bank, and the manager did give me back $69. He said he could only do that once, but I would be charged the full amount next time. I was nice to him as you can catch more flies with honey than vinegar, which I would wonder who the hell wants flies.)

BTW, I did not have any returned check fees or anything like that. The $94 was only for the over draft, not any other fees charged by others if it was a check.

I understand about the fee's. I bank at citi bank, and i'm responsible, but i just don't make enough money sometimes. There are times where i have to write a check that i know will bounce, because i don't get payed for a week. It is my life. I guess my point is the bank always tells me that they won't reverse the charges, but their problem is that thier telephone customer service is out of India, so it's easy to keep calling until one of the reps eventually reverses the charges. I guess they don't make notes on the accounts they deal with. Remember persistance beats resistance always when it comes to things like this.

I had similar problems for less than a dollar overdrafts at three seperate banks. When I called to talk to the finance departments, I was treated rudely and made to feel as if they were doing me a favor by even allowing "my kind" to bank with them.

That's when I stopped using USBank, Bank of America and Wells Fargo.

I don't care if it's policy, the last thing I need is a snippy young girl on the other end of the phone telling me in no uncertain terms or tone of voice "tough titty - pay up!" anywhere from $30 to $65 for a 30 cent overdraft.

I've since switched over to a Federal Credit Union, and lo and behold - I haven't had any problems since.

reply to post by GENERAL EYES


It is best in these cases to go to a branch office and speak to a customer service rep in person. Most of the bank operators do not even work for the bank, but a customer service company. Many of the ones who do are temps, and could care less. It is more likely the person you spoke to was over a thousand miles away.

Another thing I want to add to my rant is the other fees banks have started charging:

1. ATM fees are going up, and now banks are starting to charge their own customers to use them. Many banks are charging $5 for non customers and $3 for their own customers. They will charge their own customers up to $5 if they use their debit card on other banks' ATMs. A friend of mine went to Las Vegas, and was charged $15 by the Vegas ATM plus $5 by their bank to use it.

2. Seeing a bank teller now costs people money in some banks. They are charging a fee (up to $5) to see a teller because it is convenient.

3. Cashing a check in the bank it is drawn on now costs a non-account holder at least $10. Many people who write out birthday and other holiday checks for children should be aware of this. I went to a bank to cash the check drawn out by the account holder and the minimum was $10; the maximum was 10% of the check. Needless to say, I just deposited it in my own account at my credit union (this was in LA).

4. When calling customer service and having something done over the phone, many banks charge a fee for each service, from $2 to $10 depending on what it is. I call could cost someone $30 if they needed past statements. The account is billed at the end of them month, and many elderly customers do not realize they are paying for services they used to get for free.

The banks make billions of dollars a year on the fees they charge alone. Yet, they are begging Congress for billions of dollars with no strings attached. When they do get the money, they give it to their top executives, buy corporate jets, and splurge on expensive spa retreats. With all that, they want us to feel sorry for them?

Kind of a moot point since this only pertains to military...

but if you know someone military...get the to join USAA

those fees are nearly non-existent and they pay all your ATM fees

I know the pain...fudged up on a 10 dollar check once in my old bank and it cost me over 100

unreal

-Kyo

reply to post by KyoZero


Credit unions and other banking institutions have fees, but it is nice to see someone looking out for the military. When one is overseas at an isolated area, it may be hard to get to a computer and access the account to make sure payments aren't done too early.

reply to post by kidflash2008



I understand. I also encountered this type of attitude with the service desk employees to a lesser degree when I went in person to my local branches.

It was disheartening to see the clerks understanding my position and wanting to help, but still having to follow the business model and regulations handed down to them from on high.

Some of them were just as rude as the young ladies over the phone.

And, oddly enough - my current credit union is USAA.

Coming from a military family that has spanned every generation since the American Revolution, it's refreshing to know that there is a bank out there that understands the value of it's customers.

Civilian banking has become far too profit oriented for my tastes.

I'm staying put with USAA!

reply to post by kidflash2008


Kidflash, I can sympathize with you…

I recently had the worst possible banking error ever that would make your $94.00 look like a speed bump… moral of my story; when using a joint account, communicate, communicate, communicate…

reply to post by apaulo


lol communication! I bounced a check 33 years ago when I was married to first husband, who I assumed was balancing the checkbook each month, because he had check marks by checks. Turned out he never was balancing it, only checking off checks. I took on that task for the rest of the marriage.

Kidflash... Glad you got your charges reduced. $2 overdraft, and you're put in the same category as a swindler!
I hate to see all the fees banks have for everything! What a racket. I use an old community bank, which helps somewhat...and they're still solvent...so far.

Years ago, I had a made out check stolen (unbeknown to me), which someone tried to use at a local business. The business caught it, and they were supposed to turn it into the police. Sometime later I get a call from a collection agency saying I owed that business money, over a bounced check, which the collection agency said they had in their possession! I explained on the phone and mailed the police report to them. That was the last I heard from them.

reply to post by apaulo


When one is married make sure to have separate accounts! That is the advice from Suze Orman, and I think it is always wise. My parents had three checking accounts, one for each of them for their own personal use, and one for the family bills (house payments, utilities and other bills). It worked like a charm, and they never had major arguments about money or bounced checks.

I am glad to see all of these responses. I guess this is something that happens to us all at one point or another in time.

posted by apaulo
reply to post by kidflash

 

When one is married make sure to have separate accounts!

That is good advice.

After nearly nine years of marriage and a nearly perfect track record, in our banking, it really came as a surprise.

I’ve been brainstorming ideas to prevent this from happening again, but it really is just that simple; separate accounts… I think I’ll be handling more transactions in cash as well.




[edit on 3-3-2009 by apaulo]

it's always good to have one person in the bank that knows you. this way, when problems arise, you have someone that will do everything they can to help you.

for the record, they can waive the fees again. they tell you it is a one time thing because they don't want you thinking you can do this over and over again.

those automatic charges are insane. when I was graduating college I had two bank accounts. the local account and my account at home. one account had very little money in it and one had my work money etc and this was where my rent came from. well, the checks were identical and I was a bit of a dolt in college and my last month there I paid the rent with the local check by accident. This brought my account down to $10 or something. then I paid a kinkos bill for $14. this resulted in an overdraft charge. the overdraft charge resulted in an overdraft charge.

and so on


when my forwarded mail finally arrived, I learned of the issue. Add to the insanity, the monthly bank charge that went thru, and bounced creating a second chaing of bounces and I had me a balance on the account totalling around a grand. well, I wasn't there anymore so I couldn't go in and fight it and the clowns who manned the phones were of no use whatsoever.

it took me several years of fighting before I finally gave up. I was, apparently, on some bad banking list and was unable to open a bank account anywhere for a long time. fortunately, I had my old account.

I did send the bank the original overdraft amount plus the bank charge and one overdraft charge for the initial bounced check. I'm of the belief that we should pay for our mistakes but not when a computer glitch creates a nightmare.

reply to post by apaulo


To make it work, the best idea is for the persons on the account to put a percentage of their income in the household account. That way, it is fair if one spouse makes more money than the other. As I have stated, it worked like a dream for my parents, and they made sure the other knew about it if they used the household account for anything. That usually wasn't a problem, as they would both do their Saturday "bumming around" to get items for household projects.

I also agree with you Crakeur that it is good to know a bank worker, preferably the manager or a customer service agent. The tellers are powerless about the fees, so one has to talk with the bank managers or others in charge. Some of the charges cannot be reversed if it is a large chain. The smaller ones may give more leeway in these types of cases.

reply to post by kidflash2008
A friend of mine in the uk went overdrawn on her bank account by 50 measly pence and ended up being charged 68 pounds
Absolutely obscene.My advice would be if possible keep your bank balance well balanced and do'nt give the greedy unscrupulous banks the pleasure of well and truly ripping you off. It makes me Sooooo mad.

reply to post by uk today


Most overdrafts are done accidentally. I try to make sure my account is balanced, and try to keep $100 as a safety net. However, the prices here have risen so much that it is nearly impossible to have any money left.