New law on ATM overdraft fees goes into effect this weekend.

Thanks for this thread.

Overdraft fees are in NO WAY justifiable.

I once had to pay about $90 for overdrafts that costed LESS than the fees!

How DARE they use MY money to invest and make interest off of, giving me a paltry return and THEN have the nerve to charge me $35 PER OVERDRAFT WITHDRAWAL an THEN a $5 per day charge! HAH!! They don't give you a single DAY after your overdraft to make up the amount/fill your account. It would be a LOT more reasonable if they said "you have a week to fill the amount we'll cover for now". THAT would be treating customers right.

The banks are disgusting using OUR money and then making conditions/traps on it like that. And as IF the people who have overdrafts (the poor) have the money to even be PAYING THE FEES! Another example of rich get richer, poor get poorer.

This is why smart regulations are needed, to prevent scams like this from spreading across an entire market and becoming standard protocol (in the name of profits). Most people don't have the time or understanding to comprehend the fine print... let alone find a bank that doesn't screw them over. There's no reason the banks should screw common people over like they do, no justification. Either regulate the banks or de-regulate the citizenry to take matters into their own hands.

I've gotten to where I pay cash for almost everything I can. It's not always possible and sometimes it's just easier to have the card. But since we're trying to cut back on spending, it's easier to look in the purse and say "ooops. I don't have that much" than to put it on a card and have an ugly surprise with an overdraft.

I called my bank months ago and told them not to allow overdrafts, the guy sounded confused, like I had just beat the system.

A bank one time years ago ran me up to over 600 dollars in overdrafts. Obviously I never paid, since they ran the largest purchases first and then all the smaller ones (like gum, a soda, cigarettes, etc). If they had done it in proper order I would have owed 30 and probably paid it.

I think these banks should now have to re-compensate people like me and fix our credit for ruining it with their criminality.

Originally posted by jam321
I opted in.

The way I understood the option was that if I opted out they would basically freeze my account at a certain amount to ensure I don't go over.

I don't know about others, but sometimes I need every dime I have in my account.

[edit on 12-8-2010 by jam321]

No the way it works is automatically you are opted out so you must sign up to be opted in.

If you have not opted in, and a transaction would give you a negative balance, it would be denied. Your account would not be frozen.

Hopefully that helps ???

I have refused to opt in for all my accounts. I would rather be denied at the register then have to pay a $35.00 overdraft charge but that's just me.

H.R. 4173 (Wall Street Reform and Consumer Protection Act of 2009 )

It's such an important consumer bill that put the changes into affect.

It's time to give credit (pardon the pun) where credit is due.

See how your U.S. Senator voted - and see which party supported or opposed it:

U.S. Senate Roll Call Vote

Originally posted by againuntodust
I called my bank months ago and told them not to allow overdrafts, the guy sounded confused, like I had just beat the system.

A bank one time years ago ran me up to over 600 dollars in overdrafts. Obviously I never paid, since they ran the largest purchases first and then all the smaller ones (like gum, a soda, cigarettes, etc). If they had done it in proper order I would have owed 30 and probably paid it.

I think these banks should now have to re-compensate people like me and fix our credit for ruining it with their criminality.

Bank of America has tried this with me several times, which to do they end up posting your transactions three different ways, Highest to lowest on debits, then strictly by time on deposits, then all debits first on multiple processing days (Friday night, thru Monday morning).

I call them and tell them the truth, their contract does not let them mix and match three sets of rules to maximize fees. That they can take their pick of one, highest to lowest including the highest deposit regardless of date and time, just like they do with the debits. Or strictly by time. That the contract does not allow them to mix and match.

When they say the Contract does I tell them to fax me a copy of that contract with my signature on it, and my signature and initials on any subsequent amendments.

Or take off the fees. Sometimes it takes hours of arguing sometimes just a few minutes, but in the end they always take off the fees when I threaten them with legal action foe mixing different procedures for different types of transactions.

You really don't have to take no from these crooks, sometimes I win just by saying, look, you pay your telephone reps x amount of dollars per hour, if you want to charge me these fees I will charge it right back to you and more by monopolozing their time as long as it takes to make sure you spent those fees on labor.

I'm glad there's an option.

I personally, need the "overdraft protection" though. Sometimes I am short money, but there are things that I absolutely have to buy: diapers, wipes, etc. things for my 1 yr old son. If it wouldn't allow me to buy these things, I would be screwed.

I've found that the simplest way to avoid overdraft fees, is to not have overdrafts. It's just all simple accounting. If I don't have the money to buy something, I don't buy it. I don't write checks if I don't have money in my account. It's quite simple. Credit cards, there's a trap.

I use a small regional bank. I opted in for the ODC because, as has been stated, sometimes "life happens".
My feelings about this bank are sort of double edged. I hate the fact that they do all debits before credits, but I know why and have expressed my disgust to more than one branch manager about it. On the other side (and the reason why I still bank with them), they are very customer friendly and I trust that my account is secure with them.
While it may seem a hassle, I always have to tell them when and how long I am going to be out of state (when I vacation), they do always notify me of out of the ordinary purchases (especially online) that I routinely have to confirm, their account safety online is top notch (requiring several levels before being able to access acct info), and the tellers and managers and lenders are all nice people.

So, when they called me and asked if I wanted to extend it, I said yes, for that one single principal of their that I do not like (debit then credit).

As to the debit card transactions, no ATM will allow more than is positively available to be withdrawn, only works in increments of $10 (so you cant get the last $7 or $8 out at an ATM), store purchases on a debit card will not approve if they exceed the available balance and even a gas pump will decline if the pre-auth amount is not available.
However, they will process the first single check to arrive for processing before the account goes below $0. No checks will process after that and no debit card or ATM attempts will authorize.

I like the practice because at least I know that my rent check (the only one I write each month) will always clear as long as my account has a positive balance.

So, all in all, I get frustrated with them sometimes, but for the most part they are not the worst of a necessary evil.

I'm always glad when legislation passes that affords more protection for consumers but.....


99.9% of overdraft situations occur because of two reasons:

1: You are spending money you don't have.
2: You are not keeping track of your money properly.

I have only bounced ONE check in my entire life and that was right after I got my first bank account and believe you me, I learned my lesson.

Now? I keep a very detailed PAPER journal and I balance it while online once a week which takes all of 5 minutes.

Basically my point? I don't like banks but I loathe people's bad behavior and laziness more. If you are guilty of one or both of the things I mentioned earlier then you deserve every ding that drops onto your lazy, apathetic head and you are canon fodder for the greedy bankers.


Just my two cents worth.

[edit on 12-8-2010 by ViewFromTheStars]

Banks make huge profits on FEES. I am old enough to remember when "local banks" made good on a rare overdraft for a customer as "good will". No "good will" exists with the current mega-bankster crime famalies...just the 'ol bottom line.

You must exercise care and control to avoid the "stupid tax". It CAN be done. I have not paid a bank fee in the last 15 years! I actually come out ahead. I charge everything I can on my credit card earning rewards money and pay my balance off every month, yeilding absolutely no interest to the banksters. Some people pay a good portion of their income in "stupid tax"

Solution: WISE UP!

.........

reply to post by mothershipzeta


I used Wachovia and PNC for a long time as the suggestion of my mother, it was terrible. Overdrafts occurred constantly as well as bogus charges. Switched ASAP to USAA. They have solid performance. Run by military I believe.

Okay, so it's Thursday. I have a paltry amount in my checking acc't.

Today, I make a purchase for $13.79. I have $13.36 in my acc't.

The clerk gives me a receipt: ... DECLINED

Even though "it's not in effect until this weekend", this is great, because I didn't end up with a $35 fee over 40 cents.

Bankers suck it. Hard.



[edit on 12-8-2010 by traditionaldrummer]

Using a debit card is ridiculous these days. Although I understand it, I absolutely loathe how I can go online, check my account, and see a number that essentially means nothing.

The number you see online should ALWAYS reflect the amount that's actually in your account and available for use.

I understand that it takes several days for funds to clear, but that transaction should at least visibly deduct from your balance the second you swipe the damn card, since it's all electronic, and then the actual funds will transfer at the appropriate time.

I'm sorry, I work 55 hours a week, going to be starting grad school, will be getting married, etc...I don't have time to carry a journal with me and constantly balance my account when I'm supposed to have an online account that does that for me. It's totally asinine.

So banks can suck it. Glad this passed.

This is why I use a credit card for nearly every purchase and then pay the bill in full at the end of each month.

Plus if I do buy something that I find out later I didn't want I can just return it and it is credited back to the card and no money has even left my bank account until I make that monthly payment.

I have earned hundreds of dollars in "Cash back" bonuses, tens of thousands of frequent flyer miles, and even many perks such as free extended warranties for products purchased with the card.

Plus, the few times I've had disputes with vendors/sellers the credit card was always behind me to dispute the charge and I got my money back.

If you can budget, and pay off the credit card every month then that is what I would recommend. It also gives me excellent credit.

Just my opinion.

Originally posted by SaosinEngaged
Using a debit card is ridiculous these days. Although I understand it, I absolutely loathe how I can go online, check my account, and see a number that essentially means nothing.

The number you see online should ALWAYS reflect the amount that's actually in your account and available for use.

I understand that it takes several days for funds to clear, but that transaction should at least visibly deduct from your balance the second you swipe the damn card, since it's all electronic, and then the actual funds will transfer at the appropriate time.

I'm sorry, I work 55 hours a week, going to be starting grad school, will be getting married, etc...I don't have time to carry a journal with me and constantly balance my account when I'm supposed to have an online account that does that for me. It's totally asinine.

So banks can suck it. Glad this passed.

Rationalization.


I never said I carried my journal with me all the time nor did I say I balance it 'all the time'. I glance at it occasionally and if I down that low, which I rarely am because I didn't move enough from savings, then I pay closer attention to things while I'm home.

Bottom line? Don't spend money that you don't have and don't be lazy.

Work smarter, not harder.

Regards.

Edit to add: One thing we can agree on and like I said earlier, I don't like banks either.

[edit on 12-8-2010 by ViewFromTheStars]

Originally posted by ProtoplasmicTraveler
...if you want to charge me these fees I will charge it right back to you and more by monopolozing their time as long as it takes to make sure you spent those fees on labor.

I use that one!

Originally posted by DJM8507
This is why I use a credit card for nearly every purchase and then pay the bill in full at the end of each month.

Plus if I do buy something that I find out later I didn't want I can just return it and it is credited back to the card and no money has even left my bank account until I make that monthly payment.

I have earned hundreds of dollars in "Cash back" bonuses, tens of thousands of frequent flyer miles, and even many perks such as free extended warranties for products purchased with the card.

Plus, the few times I've had disputes with vendors/sellers the credit card was always behind me to dispute the charge and I got my money back.

If you can budget, and pay off the credit card every month then that is what I would recommend. It also gives me excellent credit.

Just my opinion.

I ABSOLUTELY agree with you on this but...again.. if one is not able to pay off the particular card that they use for these types of purchases then this scenario will not work and will ultimately, for obvious reasons, catch up to them.

I too have a 'daily use card' that I charge everything on and pay off every month but not very people I know are disciplined enough to do that. If you are charging your daily items on a credit card and you can't pay that off at the end of the month.. you are not living within your means and are part of the trap.


[edit on 12-8-2010 by ViewFromTheStars]

reply to post by jam321


I "opted out" of banks long ago, never really understood the need for someone else to store a little bit of paper for me. At one point in my life I even made well into the six figures (now not so much), I was still able to properly care for and store that amount with not problem

Absolutely fascinating reading people's personal stories about the overdrafts. I know my son had a round like the worst horror stories here, the $2 purchase costing him his grocery money for a week, and his was with a local credit union.

Same credit union told my other son that they were going to start charging a $5.00 teller fee when he made a deposit with a live teller... actually thought that one was BS until I made a deposit for him at one of the drive up vacuum tubes (from my account, at the same credit union) and the teller notified me of this fee not realizing who was in the car. I told them he had advised me of this earlier and I asked why they would charge him that fee, when they didn't charge me? Of course the teller was quick to say oh no, we'll waive that... Guess what I don't understand is why the bankers choose to dig SO deep into pockets that are already nearly empty.

I think the smaller banks jump on the bandwagon because they don't want to get left behind (profits). As far as that goes, I think the corruption of the banks and large corporations is tearing apart the moral fabric of this country because even the best of us see this going on and start to contemplate how to get theirs in this upside down world, I know I have.

To those of you that are willing to pay this fee for essentials, I hope you at least overdraw your account enough to keep the $35.00 to a reasonable percentage... you'll never get caught up if you don't; you'll always be borrowing from BoA (Peter) to pay Wal-Mart (Paul).

Hell, I make a larger ATM withdrawal if I am paying a foreign ATM fee just to keep the percentage in line. I mean really at $1.00 on a $100.00 withdrawal you're already at a 12% APR just to get your own money. For a $40.00 W/D and a $2.00 fee, 5% = 60% APR.

Love how we pay these ATM fees... I remember when the banks actually had to employ tellers and pay them so you could make deposits and withdrawals and there was NO CHARGE!