Comments on: The scandal of overdraft fees http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Linda http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-8299 Fri, 30 Oct 2009 21:23:28 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-8299 I recently became a victim of overdraft fees. A whopping $400.00 worth, even though I have overdraft protection. I’ve researched the issue at length, confronted bank officials and compiled a report. I intend to file a claim against Regions Bank in Small Claims court. Nowhere in their on-line documentation could I find the exact amount of their fees, nor did I get any satisfaction from their employees. In fact, the employees spent considerable time on the phone with their back office departments trying to get answeres to my questions. They couldn’t. They went on a screen they jokeingly call the “dark side”, (I don’t consider my money or my transactions a joke)their on-line interface to my account(s) and it doesn’t show the same information I see on-line. It comes down to really bad customer service. Why, because they are allowed to get away with it. I don’t have extra money to support the bank. It seems the government is doing a good job of that.

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By: Daniel http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-8281 Wed, 28 Oct 2009 02:28:52 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-8281 The tragedy that it is too easy for all of us to feel shame and thus be afraid to stand up and be counted about the problem. It is truly ridiculous that with debit cards and such a couple of 3 dollar lattes with one actual overdraft can cost you $70!!!! So it is no wonder banks hand out debit cards like candy, since they count as bounced checks for EACH transaction. Since we are too ashamed to admit to bouncing checks, no one stands up to the ridiculous problem. How about a limit that the check charge of $35 only counts ONCE for at LEAST $35 of overdraft if they are going to exploit the PER CHECK charge this way!!!!

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By: Marilyn Cirulis http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-7220 Mon, 28 Sep 2009 21:13:49 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-7220 David Mehmet has it exactly right. Fifth Third Bank came in and bought out our small First Charter Bank in Charlotte, NC. Suddenly, I had no more free overdraft protection. Recently, I overdrew my account by $83, with the last check posted bein $299, which should have cost me $37. Instead, the bank paid the $299 first and bounced enough small items that the fee was $148, which I did not learn about for three days, the delayed posting time on the online statement! By then I had inadvertently overdrawn the account another $42. This time they were able to bilk another $185 from it in small items. I made a couple of emergency deposits and got home in time to pull up the statement, which again was overdrawn for $19, for which they charged me another $74. All total, thish 5 day series of incidents cost me $407, my grocery money for 2 weeks. Additionally, I had tied my overdrafts to my credit card, only to learn after-the-fact that the bank will only transfer money from the card to the checking account if you owe less that 50% of your card’s credit limit! Without real regulation, there’s no way the consumer can win.

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By: B. David Mehmet http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3981 Fri, 10 Jul 2009 19:01:14 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3981 THE TRUTH ABOUT BANK OVERDRAFT FEES (The Scam)

I am going to make this short and simple. The bank scam to increase overdraft fees works like this:

Scam Ingredience:

(1) Delay posting account balances

(2) Delay posting charges

(3) Re-sequence and pay charges from high to low

THE OVERDRAFT SCAM:

Bank Balance = $100

If you went into overdraft on a single charge and the bank paid the charges in order by DATE (Day#1 then Day#2 charges) even if it re-sequenced them from high to low, you would only pay one single overdraft fee of $35. But by delaying the postings they can batch them together on a single day and then re-sequence them to increase the $35 overdraft fee to $105.

OVERDRAFT FEE $35:

Charges Day#1: $10 + $10 + $5 = $25 (account balance = $75)
Charges Day#2: $65 + $35 = -25 (You only pay one overdraft fee on the $35 overdraft)

OVERDRAFT FEE (by delayed charge postings) $105:

Batched Charges Day#2: $65 + $35 + $10 $10 + $5 = $125 charges (3 overdraft fees = $105)

The delay in posting an account balance is to throw the consumer off in believing they have enough money in their account so they can go into overdarft. Novice consumers don’t understand that the problem is in how the bank is creating the multiple overdrafts from a single overdraft. So, when the bank tells the consumer “it’s your fault for not watching your balance”, the consumer thinks they are at fault because they are at fault for the initial overdraft; but the consumer doesn’t understand how the bank creates the additional overdrafts. Thus, the scam.

Read More at http://www.Badisse.com

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By: B. David Mehmet http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3899 Wed, 08 Jul 2009 22:44:04 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3899 Join this class action lawsuit against Wachovia Bank, N.A.

Read the FDIC report issued on November 2008 that uncovers a “re-sequencing scheme” Wachovia and other banks implemented to rob consumers of their money through overdraft fees:

http://www.badisse.com/?p=82

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By: Ian http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3751 Mon, 06 Jul 2009 12:56:22 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3751 Oh, please. Stop whining and move your account to a consumer-friendly coop…the awesome Credit Unions. They work for you, not share holders, they are updating to include global ATM access, they will be responsive.

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By: Bill http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3650 Fri, 03 Jul 2009 02:05:34 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3650 It’s just not the poor being victimized by these fees, it’s all sorts of people. Years ago I witnessed large numbers of young soldiers in the military living paycheck to paycheck because of these fees. Many would eventually have to go to an agency such as AER (Army Emergency Relief) and get a loan to dig their way out of the mess.

We missed out opportunity to shut these crooks down and start over when we gave out the bailout money.

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By: Wendy http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3648 Fri, 03 Jul 2009 01:54:04 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3648 DON’T PAY YOUR FEES.

IF YOU HAVE A CREDIT CARD, MAX IT OUT, THEN JUST DON’T EVER PAY THEM BACK. IF ENOUGH PEOPLE DO IT, THERE IS NOTHING THEY CAN DO ABOUT IT.

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By: Argel http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3642 Thu, 02 Jul 2009 23:11:45 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3642 Despicable, but also predictable. Those with power and influence in this country have lost their moral and ethical compass (assuming they ever had one). Greed is a virtue to them, and the masses are indoctrinated into thinking that’s okay because Free Markets are Good.

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By: Tiffany http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/comment-page-1/#comment-3632 Thu, 02 Jul 2009 21:12:33 +0000 http://blogs.reuters.com/felix-salmon/2009/07/02/the-scandal-of-overdraft-fees/#comment-3632 I agree, I have seen families lose 2 weeks worth of income a month on overdraft fees, in turn making them take out pay day loans to pay rent or mortgages. It’s a scary cycle.

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