U.S. banks will collect a record $38.5 billion in overdraft fees this year - 600RR.net
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post #1 of 10 (permalink) Old 08-12-2009, 10:32 PM Thread Starter
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U.S. banks will collect a record $38.5 billion in overdraft fees this year

You have got to be kidding me?! Just another way to azz-rape us while we are down...

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Moebs Services collected data from 2,000 banks and credit unions, and the firm found that 44.5% reported a net overdraft revenue higher than their net income. Fee hikes have helped banks boost profit amid the recession, Moebs said.

"Most people paying these fees have a credit score below 590 or so," Moebs said. "Beyond that, they're a whole gamut of people: rich and poor, men and women."

Government-mandated overdraft fee increases "are leading the charge," Moebs said. For example, he said, a local U.S. post office decides to increase its overdraft fee to $35. Area retailers note the increase and in turn raise their own fees. Finally, banks follow suit.
Full story here: http://money.cnn.com/2009/08/10/news...oebs/index.htm

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post #2 of 10 (permalink) Old 08-12-2009, 10:35 PM
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Damn! I use U.S. Bank, but i gots overdraft protection. UMB Fu**ed me B4 though
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post #3 of 10 (permalink) Old 08-13-2009, 02:27 AM
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This is so stupid, people overdraft most of the times because they are broke in the first place.

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post #4 of 10 (permalink) Old 08-21-2009, 01:01 PM
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Ahh the checking "card." I wish I came up with that idea. What a money maker. That little baby is the biggest contributer to over draft fees. I have no sympathy for people who overdraft. People dont even know what the term means.

No Gimenez. People overdraft because they dont know how to manage money and think that little baby with the Visa logo is a credit card. Its because people are stupid, not broke. I know plenty of broke people who dont overdraft. Because they cut their check card in half and got an ATM card instead. Yea, they still make those.

I love it when my friends justify using it instead of a credit card. Oh I KNOW I have that money and I dont have to pay a bill later... Ok... So... You dont want to build credit and are too lazy to set up a money transfer every month?

Its like paying in cash. No its not. Its like paying with a credit card and getting none of the benifits of actually having one.

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post #5 of 10 (permalink) Old 09-24-2009, 07:54 PM
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I like to call these "Because we can" fees.
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post #6 of 10 (permalink) Old 09-24-2009, 08:17 PM
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Quote:
Originally Posted by BDiddy View Post

No Gimenez. People overdraft because they dont know how to manage money and think that little baby with the Visa logo is a credit card. Its because people are stupid, not broke. I know plenty of broke people who dont overdraft.
Not true at all. I've overdrafted 3 times in one day for a total of almost $100. I had a seperate account I set up for saving up for insurance premiums, etc and decided to quit doing that (quit moving the money not quit saving). Well, I accidentally grabbed the wrong card to pay for a couple purchases that day and got hit with a $100 in fees. Was it my fault? Yes. Was it stupid? I dont think so...just grabbed the wrong card. Was it a redicluous fee considering I have two other accounts with more than enough money in them? ABSOLUTELY.

Similar thing happened to my brother except he got hit with almost $500 in overdraft charges.

They make it even more painful by executing the largest transaction first so that you overdraft quicker. For example, say you buy 5 items, 1-$100, 4-$5 items in the same day and the $100 purchase was the last one of the day and you had $50 in your account. Instead of using the $50 to pay for the 4 items, they use the $50 towards the $100 item automatically causing an overdraft on all 5 items instead of what was really one. Assuming an overdraft charge of $30 per occurrence, it cost you $150 when really it only needed to be $30.

That is what is BS about overdraft charges...............


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post #7 of 10 (permalink) Old 09-24-2009, 09:01 PM
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My oldest boy always gets at least $150 in overdraft every two weeks. I tried to explain tbut he does not get it. I even showed him all the money he could have spend on his car over the last year instead of giving it away.
Ten years ago, it was fraud to write a check with no cover, now it is money to the bank. "They get you in the drive through" and then some.

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post #8 of 10 (permalink) Old 11-05-2009, 10:51 PM
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Quote:
Originally Posted by decaldjr View Post
Not true at all. I've overdrafted 3 times in one day for a total of almost $100. I had a seperate account I set up for saving up for insurance premiums, etc and decided to quit doing that (quit moving the money not quit saving). Well, I accidentally grabbed the wrong card to pay for a couple purchases that day and got hit with a $100 in fees. Was it my fault? Yes. Was it stupid? I dont think so...just grabbed the wrong card. Was it a redicluous fee considering I have two other accounts with more than enough money in them? ABSOLUTELY.
So you say its not true at all, then post up an example of how you mismanaged your very own money even if only 1 time? Id bet dollars to donuts that if you went to the bank, they would have credited them back. And if they didnt, Id expect you to move your money to a new bank and to NEVER grab the wrong card ever again.

Quote:
Similar thing happened to my brother except he got hit with almost $500 in overdraft charges.
Again, mismanagement of his money. But now imagine that the little Visa Logo or Mastercard logo wasnt on the card? Would either of you have made the same mistake?

Quote:
They make it even more painful by executing the largest transaction first so that you overdraft quicker. For example, say you buy 5 items, 1-$100, 4-$5 items in the same day and the $100 purchase was the last one of the day and you had $50 in your account. Instead of using the $50 to pay for the 4 items, they use the $50 towards the $100 item automatically causing an overdraft on all 5 items instead of what was really one. Assuming an overdraft charge of $30 per occurrence, it cost you $150 when really it only needed to be $30.

That is what is BS about overdraft charges...............
If these things work anything like a credit card, then your account isnt charged until the vendor decides to settle up. Ive bought something on a Saturday and it was charged on my statement on the next Monday. So no "they" dont pay for the big ticket items first. The vendors selling you those items want to get paid so they settle or reconcile up faster than other places.

So basically its BS that you dont have the money in your account and instead of bouncing a check, they pay for it and charge you a fee, which is the fee for a bounced check instead?

I dont disagree that over draft charges are excessive for small items. I do think that anything under 25 bucks should be charged the price of the item instead of the full amount.

Or even better, CUT YOUR CHECK CARD IN HALF.

Ive already said that the problem is that people treat them like credit cards and they arent credit cards. They are "checks."

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post #9 of 10 (permalink) Old 11-05-2009, 11:09 PM
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Quote:
Originally Posted by BDiddy View Post
If these things work anything like a credit card, then your account isnt charged until the vendor decides to settle up. Ive bought something on a Saturday and it was charged on my statement on the next Monday. So no "they" dont pay for the big ticket items first. The vendors selling you those items want to get paid so they settle or reconcile up faster than other places.

So basically its BS that you dont have the money in your account and instead of bouncing a check, they pay for it and charge you a fee, which is the fee for a bounced check instead?

I dont disagree that over draft charges are excessive for small items. I do think that anything under 25 bucks should be charged the price of the item instead of the full amount.

Or even better, CUT YOUR CHECK CARD IN HALF.

Ive already said that the problem is that people treat them like credit cards and they arent credit cards. They are "checks."
I agree with almost everything you've said in regards to responsible use of cards... but you're wrong on how things are posted to an account, and the fact that some banks actually do batch all the transactions for the day and process the largest ones first, to maximizing overdraft fees.

http://dodd.senate.gov/?q=node/5278/print

Quote:
Some banks maximize penalties by processing larger purchases first, draining accounts faster and creating the potential for multiple fees on multiple smaller purchases. Even on debit card or ATM transactions, banks do not notify the customer when they are withdrawing against insufficient funds. As a result, a few small purchases can result in hundreds of dollars in fees before a customer is notified.
Either way, check cards are RETARDED, use your debit card or get a credit card and pay it off monthly. Check cards provide no additional convenience over a creditcard and none of the benefits either.
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post #10 of 10 (permalink) Old 11-17-2009, 10:56 PM
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This is up there with the exorbitant interest rates charges by credit card companies. Read "Fleeced" by **** Morris for more eye openers.
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