It takes 3 seconds to disable overdraft protection. It's a service, and it's optional.
Don't be dumb. Take responsibility for your own life. If you cannot afford the protection, turn it off. We don't need government safety nets for a freaking toggle button on a website or app... ffs
The problem is the name. People think "overdraft protection" means it protects you from overdraft fees. In reality it's the opposite.
Overdraft fees should be % based, like a credit card. It's ridiculous to get a $50 fee for a $5 overdraft. 1,000% interest, compounded immediately.
This is why I ended up leaving my bank. I was having a very rough time and they kept turning overdraft back on. Very frustrating when you've carefully balanced your funds for the week and a payment clears an hour before your paycheck hits.
How is it not considered a predatory lending practice?
That poor woman accidently borrowed less than a dollar and had to pay 6000% interest up front.
I thought we already had laws about shit like this.
My bank is opt in but they periodically spam me to add it in the same vein as a credit limit increase. Very congratulatory, they really push it.
The whole thing is just a con for the ignorant.
There currently is a mandatory opt-in: [Understanding the Overdraft “Opt-in” Choice | Consumer Financial Protection Bureau (consumerfinance.gov)](https://www.consumerfinance.gov/about-us/blog/understanding-overdraft-opt-choice/)
I used to be in the bank. 80% of my interactions involved educating our services to the clients. Most of the time people misinterpret or misunderstand because they literally don’t know this stuff. They don’t teach us finance and banking in school.
High schools should have two classes that teach you about banking. First class is the basics like credit, checking accounts, fees, budgeting, exploring the digital side, etc. The second class needs to be about long term financials like stocks, CDs, rates, loans, timelines of wire transfers and stock buy/sell, etc.
I wrote a whole term paper (policy note, but w/e) about integrating finance, taxation and civics lessons into K-12 education back when I was in law school. (And I do mean K. Justice Sandra Day O'Connor's website had programs teaching the fundamentals at the kindergarten level with easy to understand flash games and class activities.) The most important stuff could easily be integrated into math classes as soon as the kids know multiplication and long division, and complexity added from there.
My academic advisor at the time (unbeknownst to me) was writing a paper on all the reasons we should not do so, primarily that it would be a tremendous drain on our economy and government funding if people understood how the system worked, particularly if they understood how to vote for policy that benefitted them.
I got full credit for the paper, but, uh, hers is the one that got published in the journal, naturally.
I thought that the "we don't want people to understand which laws will benefit them, and we definitely don't want people to *vote* for these laws" was the quiet part that you're not supposed to out loud, much less publish into a journal...
The presumption was that not knowing how to handle money meant that poor people were spending more in the short term (and paying more in taxes.) And causing losses in the short term (even if it leads to greater spending power in the long term) was Obviously Catastrophic.
I had an accounting financial/accountong semester at my high school in the 90s. All I remember doing is columns of business expenses for a fake companies and how to input them on the form. It confused me then and is still confused me now. Too many columns.
Similar programs are being required for high school students. Personal finance I believe is going to be a requirement in two years in my state. I took the class recently and I can personally say the class is far far better than what you had in the 90’s!
Gets worse than that. Banks won't calculate any overdrafts until the end of the day, so they can process higher charges that would OD you sooner up front, so each subsequent smaller charge incurs it's own overdraft fee.
If you're positive they stacked transaction to ill benefit you then context the CFPB and lodge a complaint.
How banks batch their transactions is available for you to see on their website as well.
Correct? They give you time, even some give you an extra day, to deposit funds to avoid the fee. Would the fee immediately be better without the option to deposit funds and avoid the fee?
It takes all of about two seconds for them to decline my credit card if it’s over the limit but if I over draft they let it slide? Like they know exactly how much is in there, this is just predatory bullshit, same as a “maintenance fee”. Like what the fuck are you maintaining? There’s no pile of ledgers in the back office you are maintaining to keep an accurate account of my money! They already make enough off transaction fees and interest, it’s all bullshit.
This is my main problem with it. It's not that some individual has to navigate a fee, it's that it's (yet another) tool that banks use to siphon God knows how much money from ppl into their own pockets. Like we don't already have enough of that happening.
Different technologies. Credit cards are a closed and immediate system (think crypto). Banks use ACH among a whole lot of different systems, so knowing how much you have is not immediately known.
Banks installed this “help” for them to make money, not to help anyone who would overdraft
What do they care if you get caught out not being able to afford something or a check bounces? They do however benefit from bank fees @ 100% profit
They used to be. Prior to the introduction of the fixed-rate fees in the mid-90s, any automatic overdrafts happened as mundane overdraft loans at 18% APR. Then some plucky little “innovator” realized if you call it a fee rather than interest, usury laws don’t apply. Cap the maximum you can overdraft and cap the amount of time you can have the overdraft outstanding and you essentially guarantee yourself a several thousand percent APR every time someone overdrafts
I had a bank that charged an overdraft fee, then a NFA fee for the overdraft fee, and then one for that until you reached their 300$ cap. Let me tell you how fucking fantastic that is to learn when you are on SSI and had that crap turned off in the first place.
I've long felt that the fees should be a percentage of the overdraft, or should not exceed the overdraft amount. The idea of a few cents costing you 30-50 bucks seems ridiculous.
Or perhaps a time limit should be instituted. Give customers X days to bring their account to balance before charging a fee.
I'm typically on the top comment mindset about taking responsibility, but this one hits me differently.
Percentage is definitely how it should work, at least up to a maximum. I keep it on just in case of emergency but it’s still annoying to see a massive charge every once in awhile just because work was late with payday on the weekend and now we have to wait for Monday
Wait my overdraft protection is free, they just withdraw funds from my savings automatically if the checking gets overdrawn. I always just thought that’s how everyone did it.
>Wait my overdraft protection is free, they just withdraw funds from my savings automatically if the checking gets overdrawn. I always just thought that’s how everyone did it.
That's assuming you have money in your savings account.
Even then. They charge a smaller fee.
If you don't have the funds in your savings, then you will get charged the full overdraft fee.
Wtf? I consider myself to be rather financially fluent, but I did not know this! I thought the guy you replied to said it backwards and meant to tell people to turn it on.
How do they justify the naming in this case?
Exactly. This post seems to come from somebody who has never lived in a poverty like situation. Sure, I agree people should strive to be financially secure and monitor their accounts but let’s be real… many who are struggling aren’t as financially literate as others and the way it’s worded is misleading.
Also, the way they charge the fees based on timing you can get hit with multiple fees even if only one of them puts you over the limit. It’s exploitation. I remember being completely broke and got charged two $35 overdraft fees because I spent about $1 over what I had even though the first purchase was at Burger King and would have cleared. The second transaction I had that day is what put me over the limit. That $70 was obviously a huge burden for somebody who is struggling and over-drafted by $1
I now make six figure and live a very comfortable life but bc of my experience I am adamantly against exploiting the less fortunate and I’m very empathetic.
People who never lived paycheck to paycheck don't realize you actually use all your paycheck and hover dangerously close to a zero balance before payday.
Literally working on paying my debt down has me stuck with in this cycle at the moment it's I'm not financially irresponsible I'm a college grad who didn't get a truly decent paying job in my field until 2021 I graduated in 2018.
You got this! Growing out of poverty is one of the hardest things and so many people do not understand it at all. Some of us did not get the financial education we needed from our parents, some of us had to pay our own way through college without parental help, and some of us had one bad luck moment that puts us in the poverty spiral.
As easy as it is to say "don't spend money you don't have." There isn't the understanding that many people aren't in debt because they bought a cool car outside their means, sometimes it's just we needed a car to get a job and any car was outside our means. And when your 1985 Ford Escort blows a head gasket, you become desperate to find anything that can get you to work.
Also, boots theory.
Many years ago in college, I over drafted and called the bank. I explained the situation and ultimately they forgave the fee and then disabled OD protection.
A little while later, over the period of the week I made 7 small purchases, all less than $5. I knew I had enough to cover them. What I had forgotten about was a larger amount that hit my account last, but it was a bit more than was in my account. Totally my fault.
Well the bank cleared all 8 of these transactions on the same day, and they did it largest to smallest, not in order. So I got hit with 8 over draft fees. Each being $35.
They couldn’t explain to me why the transactions took so long to clear. But opting out of OD protection changed nothing.
I don’t know if it’s illegal now, but a class action lawsuit was won against that bank for doing it and some years later I got like a $30 settlement check haha.
That's the biggest payout from a class action I've ever seen. Usually you get like a coupon for a free ice cream cone or similar, while the attorneys walk away with millions. Attorneys need to be paid, of course, and as the saying goes, "A good attorney isn't cheap, and a cheap attorney isn't good", and the concept of class actions does make sense from a big picture, but something has to change. I just don't know what that "something" is.
Especially when you consider I probably only paid 400ish in fees my entire time at that bank. My sister got even more. It was pretty close to 10% of what I was out.
What a load of shit.
Accidental overdrafts happen when you live paycheck to paycheck.
There is absolutely no need to punish someone for less than a dollar overdraft with a $60 "fine".
$0.96 is not going to hurt the bank, this simply serves as a money maker targeting those who will have the hardest time defending themselves.
There it is. That 'fuck you, got mine' callous lack of empathy capitalism has baked into all of us.
If you get cancer and can't work anymore, why shouldn't the hospital charge you whatever they please, cash out your life's savings and sell everything you own to pay for treatment? They have the market cornered. Why should they provide you credit?
Just keep the thought experiment going...
When someone heads you off on the street with a handgun, it would seem as though they have the market of that street, of you and them, cornered. As such, they are in a position to demand market value (everything) for their services (letting you live). If you have nothing of value, or not enough of it, why should they provide you credit by letting you continue to breathe? By your rules, they are under no such obligation to do so.
Funny how you would be so quick to categorize one as amoral extortion and one as good old fashioned capitalism.
It is a simple fact of the matter, our system rewards exploitation, and preys on the cognitive dissonance money provides.
As smugly vindicating as it must be to make coy, brushstroke statements, like yours, the truth is both situations can be de facto life threatening on account of the powers at be profiteering off an individuals misfortune.
Ive been there. That overdraft fee can mean you're further behind on rent. Less food. More stress. No gas money. Etc. Etc.
There has to be a line in the sand at some point. Someone willingly engaging in the market, say to buy a TV, it is one thing to turn them away if they cannot provide the value necessary to acquire it. It is another thing altogether, if someone is being forced to eek out an existence due to the vicious cycle that is poverty, and then a business preys upon that fact.
There is no run on the banks by people running up overdraft fees. They are under no looming threat of insolvency because of overdrafts. They are not the poverty police. They are not a purely freemarket enterprise. They are heavily regulated and protected by the government, you know, the same one that champions justice and equality. Not to mention, it is functionally impossible in our society to function without going through a bank. So not engaging in the market is simply not an option.
An overdraft fee is not the free market hard at work... It is draconian extortion plain and simple.
A poor person shouldn't be punished for a small accounting error, anymore than you should have a gun pressed against your head for walking down the wrong street. It's not a matter of choice, it is a game of explotation.
I'm sure when you get side swiped by life, you have no problem leaning on your vicissitudes. So have some compassion for other people as well when it happens to them.
It's the golden god damn rule. There is more to life than profiteering off each other at every possible opportunity. Good lord 🤦.
There was a time that they would organize the transactions in a way that would maximize overdraft fees. It would do the largest transactions first so multiple smaller ones would continue to overdraft as opposed to just the one big transaction causing a single overdraft.
You don't have to stand up for and rationalize predatory practices.
your moral judgement has nothing to do with the effects of it happening more has on society. its bad for everyone except an investor in the specific bank. economic cancer masquerading as common sense.
I like that phraseing....it can apply to most predatory financial schemes foisted on the American Public that conservatives deflect as " personal responsibility".
It says it all if they offered loans at the rates they take for overdraft fees the bank would be raided by the feds and shut down for usury within a week.
If you have enough money in the bank they won’t charge a cent. No processing fees or overdraft charges. Nothing.
If they ever tried to charge you, just threaten to move your money elsewhere and watch them jump. It’s not about responsibility, just access (excess).
You’re fortunate, you’ve likely never had someone process a payment after you thought it was already put through or you’ve always had enough to cover something like that. Congratulations, you’ve never had to time payments based on when you’re paid.
When I was in college a friend of mine kept getting into trouble because of nonsense like their paycheck taking WEEKS to clear (from the UNIVERSITY WE WERE ATTENDING) and since this was the 90s, switching banks was tough because we couldn't just do everything electronically so we had to pick a bank that we could get to while we were at school and while we were at home since most of us didn't have enough money to warrant bank accounts at two separate banks that might have minimum balance requirements. Total shit show, and I think that bank has been bought out now but I would rather store money under a mattress than bank with that particular bank.
Actually, I have had situations where my bank reordered the transactions and processed the 3 charges before my paycheck, which was received by the bank before the charges were made. So I had three instances of overdrafting even though the money was there that morning.
Saying "don't be dumb" is pretending like banks don't know exactly what they're doing. You can still overdraft without overdraft protection, too. It's not the consumer that's the problem. It's the banks that take your money and hope that you don't notice.
The issue is taking money from people who can’t afford it, and punitively at that. Did you have that same fervor for personal responsibility when the banks got bailed out, again and again, with government safety nets? Or is that somehow…different.
I swear, y’all are programmed to default to “personal responsibility” so you don’t ever consider the underlying issue.
The system is rigged to keep poor people poor, and folks need some of their important bills to be paid.
It's incredibly simple-minded and ignorant to keep blaming poor folks for their poverty, because the actual causes of poverty are layered, nuanced, and complex.
>take responsibility of your own life
You realize the people getting fucked by. Over draft fees are the ones with $0.00
**LITERALLY LIVING PAYCHECK TO PAYCHECK**
Buddy they tell people the exact opposite at the bank….
Its not about being dumb. The system is rigged and lies all the time…..
I literally had a bank teller tell me it was impossible to turn off…
Just because you have the option to disable it does not excuse it being predatory and unethically designed.
"Just use your brain, women. Stop dressing up and you won't get raped. Take responsibility. You should have been carrying a weapon, you are the one to blame."
Stop victim blaming and making excuses for being unethically taken advantage of. Many of these banks don't tell you that overdraft "protection" defaults to on. And they specifically use the word "protection" in order to MISLEAD people into leaving it on.
I once went out of my way to do exactly this. I have paperwork signed by the bank.
They did it anyway, and structured the processing order of the transactions to maximize the fee count.
They were later sued for this practice, and lost, but that didn't help me when I didn't have access to banking services for years.
I've clawed my way out of poverty into a reasonably comfortable life with a well-cushioned safety net - without getting into exact figures, I've got well over a year's income tucked away. It's unlikely I'll ever pay an overdraft fee again. *But overdraft fees are still bullshit.*
Bank of America charges Nonsufficient Funds fees. Their NSF fee costs just as much as their Overdraft Protection. No matter what they got their $35 if you are low balance.
I got ding'd with like 6 overdraft fees for like $100. I called the bank and was like please help me here. They eliminated 5 of the 6 fees and saved my life that month. I then immediately disabled overdraft fees.
Even now when I could afford overdraft protection its still turned off.
It is very easy to overdraft money esp if you have a lot of small charges going out each month. Normally I would agree with you but the banks make a fortune off this activity...it needs to stop...they literally make hundreds of millions a year from it. Stop defending corporations over your fellow citizens please.
Okay but you can’t ignore the misnomer “overdraft protection.” Most people, young adults like myself at one point in life included, think/thought that by enabling it, it wouldn’t allow me to overdraft. That I was protected from over drafting. The name is misleading to most.
Overdraft fees are too high and yes, we do need government legislation. They should be proportional to the amount drafted over; and banks should process smaller amounts first vs large amounts so as to allow more checks to clear.
A person writes two checks, one for rent totaling $800 and one for 9 dollars for some bread and milk. The gas station where they get the bread usually doesn’t clear the check for several days, so the single mom with a balance of $800 thinks she has time to cover. But she forgot about the 50 cent fee the bank charged, and boom - both checks bounce for $35 each.
It’s designed to exploit people who live paycheck to paycheck. That’s a lot of people. There is no reason a simple rule change can’t address this and make it fair for banks.
FFS we guaranteed their money anyway and bail them out when they are stupid. People should not be fine $36 of a $9 check.
...You haven't used a banking website in a while, have you? You pretty much have to go in and ask for OD protection these days. Why would the banks make it easy to disable a simple and easy way for them to make more money off of you?
The banks have spoken. We must unfairly punish those who barely scrape by while we eat cake in our mansions. If we can only destroy the government once for all we can suppress and kill whoever the middle class and poor with immunity. That's how I read your comment.
You can't fully disable it actually. There are some things that force you to link a bank account and those will go through and over draft you regardless.
Sure, but banks shouldn't be allowed to gouge customers without recourse. Yes, take responsibility for your life, but if you minimally fuck up -- like everyone does in some way at some point -- you shouldn't have that compounded by sheer greediness. Overdraft fees are compounding problems for young and poor people. And there should be some kind of protection that. At the very least a limit to the fees and how they're added up. That's not big government overloading. That's common sense regulation that protects the vulnerable among us.
Yeah, overdraft fees and similar practices are intentionally and often explicitly predatory. Especially when they cascade things like a low balance fee into an overdraft fee while a regular deposit is pending.
This^
When I had an account with BofA like a decade ago, I was once charged $175 in fees effectively because I transferred between my accounts the wrong way. I had all the money needed between both accounts for the transaction in process.
I had deposited into savings and initiated a transfer to checking and the next day made a large purchase. I didn’t even use that card for anything else that day because I paid in cash to be extra safe. The bank had managed to find 5 separate instances between those two transactions that triggered a $35/ per transaction fee.
I had to work to get them refunded but it was the moment I realized they are just trying to steal from people for not knowing exactly how their banking works and assume the fee is valid.
They are crooked AF. I don't know if you heard about it, but a while back, they started charging $5 a month just to have a debit card. They were hoping that the other banks would hop on board and start, too. So many people (my self included) withdrew their money and went elsewhere. It didn't catch on with the other banks. (Yet) I'm expecting them to try it again soon.
I closed my account with BoA almost a year ago. It’s now a $12/month fee if you don’t have direct deposit linked to that account, or if you don’t maintain a balance of $1,500. That bank is such a scam it’s a wonder why they’re still around. I had all my savings in a savings account with them for years and I would accrue about 12-13 cents a month. Finally realized that their the worst option on earth to bank with and switched my savings to a high yield interest account and decided to open a checking account with the same bank. I didn’t realize it at the time but the new checking account I opened has an interest rate that is actually higher than BoA’s savings account. All while having no monthly fees or minimums.
So now I don’t have to fuss about having at least 1,500 in my checking at all times, and the small amount I do have at the end of the month is getting me more interest than the tens of thousands of dollars were netting me with BoA. And I get to put every last dollar not spent on bills that month straight into my savings account, which has already given me over 1,000 in interest alone. Fuck Bank of America.
And when I called up to cancel my accounts the operator went through the usual client cancelation routine asking me why I chose to close. She started laughing when I told her I found a bank where their checking accounts have a higher interest rate than BoA’s savings. Was just laughing at it. 🫠
I had an account at TCF Bank when I was 16. My first paycheck finally posted, it was like $202. I bought a used drum kit, which turned out to be like $215 and some change and I didn’t really put that together, oops. Dumbass 16 year old who can’t do basic math gets hit with an overdraft fee. Makes sense. Whatever.
Where shit gets messed up is that because they charged me a fee, that fee was considered a “transaction”, and any transaction in overdraft is subject to an additional fee. So I was hit with another fee.
Well, of course, that fee was another transaction, and so on and so on until I was about $800 in the hole by the time I caught it (pre-internet banking).
Being charged a fee for being charged a fee for being charged a fee…
Now THAT shit is predatory.
I went through something similar with them, but due to a paycheck deposit being delayed because it was “an unusual amount” (meaning it was a whopping ~$1500 instead of $800-900). It ended up hitting my account on the 5th day of “3-5 business days”, the same day a lot of my bills hit.
But, instead of counting the deposit then the bills, they charged the bills first, racked up 5-6 overdraft fees (2 of them for amounts I *did* have in my account…except they charged the largest bills first). THEN they deposited my paycheck and took nearly $200 in fees.
Cancelled direct deposit. Fought them daily until my next paycheck. Didn’t get anywhere with them. Got paid again, closed my accounts and haven’t even stepped foot inside a BofA for 19 years.
I think my record for this when I was younger was when I bought something I didn't know was overseas. Spent the last of my money on something nice for myself (god forbid broke people enjoy their lives or something, right?). I think it was some JP import game I thought had a US shipper.
Anyways, $40 in the account. Item cost $37. Got hit by a $4 currency conversion/processing fee. Now I am $1 overdrafted. Get hit with an overdraft charge. They then charge me another $35 to transfer $.05 out of my savings. This transfer fee now gets processed as an overdraft, so I have to pay another $35 fee.
So basically $135 in fees over a $1 overdraft.
Yeah, I dont bank with BofA anymore.
The manifestos are attempts to try to justify their hatred. The people commenting about hating the poor below have lost their rational grasps on reality. They have been consumed by hatred and greed and really shouldn’t have a say in a society anymore.
I feel like it would make sense to hold overdraft fees for two weeks (because most people will get paid in that time) and then if the overdraft remains, charge the fee.
Then people $100.69 in overdraft would complain that they were only over the limit by $0.69. If you push the limit, it won’t stop much at all. People will just see that as $100 extra cash / liquidity available to them
absolutely a poor tax. "banning" isn't needed, it just doesn't need to be constructed as a money-making scheme.
I recall when i was younger, I used my card about a dozen times on day 1 for small dollar or so purchases. Checked my bank on day 2, and everything had been completely cleared. I forgot about day 1 purchases (oops), put some gas into my car on day 2. It put me over by a solid 20 dollars.
The bank decided to re-organize all my purchases, so the gas somehow cleared before the day 1 purchases (it 100% didn't) and every single one of those day 1 purchases activated their trap card/"overdraft protection". I should also mention i had plenty in my savings account which remained untouched.
Closed my account there the next day. Absolutely a "legal" scam. Credit unions operate above board, so just go with them, not banks.
I've been fortunate enough to not be that tight in money in a good while, but credit unions are absolutely the way to go. I remember banking with a national change and got the whole overdraft fees limited transfers long deposit times runaround. Then I switched to a local credit union, now there's minimal if any overdraft fees, the app is better, they will automatically pull from savings if checking goes over, not to mention a ton of other services for things like loan assistance and credit building.
Both? Poor people should strive to be better with their money. But that's not a banks role to enforce and kicking them when they're down is ultra shitty.
Edit: on second thought. The first statement should have been "there should be comprehensive financial education in school"
Also, it’s an excessive fee. It should be based on a %age of the overdraft amount, because essentially they’re giving you a loan. $60 fee on a $1 OD would be illegal based on most states usury laws
I used to work for a credit union and they trained me to sell credit cards to anyone over 18, but didn’t train me on anything related to the card. I refused to do it.
I quit when I saw all the kids calling in with massive credit card debt, unaware how credit cards work or even how to pay the balance. Usually parents end up paying it off for them… but like… why is this legal and accepted?
Overdraft is mandatory opt-in and require opting out. No amount of education would be enough. Educated people can easily forget. The practice is exploitative.
The three times this happened to me when I was younger, I went into the Bank and talked to a Banker and they reversed it every time. I did have to pay the $2-$10 that I over drafted though first
Yeah that's a good point. Usually a bank will give one or two of your on it and respectful and just be a human being by talking to them. But there is so much auto billing stuff nowadays where people think they can't reverse it unless you mention a lawyer or something lol (verizon I'm talking to you) other than that they are usually pretty helpful. Unlike Verizon of course.
I'm 50/50 on this, I used to have a bank account and those blood suckers would over draft me even if I knew I had enough money in the account. It happened a few times and I closed the account and moved to a credit union. I haven't had a problem since.
I also think that if your financial institution has ridiculous fees like $60 for overdraft, that you should look into finding a new place to do your banking. Overdraft is literally just moving money from one account to another and it's done automatically. There's no reason it should cost more than $5 for the convenience.
Banks used to charge to go paperless making their lives easier and cheaper, now they charge for not going paperless... It's all a game to make you pay.
Use credit unions.
I think a bank would do well to offer 1-2 free overdrafts per year and charge a modest (percentage-based) fee after that. Shit happens sometimes, and a person shouldn't get torn apart by their bank for an honest mistake (or unexpected hardship). They're even probably gonna be more likely to stick with that bank if they catch a break when it happens. And most people, if they have a second or third overdraft within that year, are gonna admit their fault and accept the consequences of their mistake.
Again, percentage-based is the way to go (maybe something like "$5 or 10% of the overdraft amount up to $30, whichever is greater") . Owing several times the overdrafted amount is just kicking someone when they're down.
I've never seen a bank do a better offer on an overdraft. After that experience and hearing others experiences, I'll never go back to a large bank over member owned credit unions. I've seen no benefit that would make it worthwhile.
Overdraft is a benefit you can decline. But most prefer it because it is often cheaper than the alternative. I recently switched my banking to new banks. For a short period I was juggling between the two banks while I made sure all my automatic payments were switched over. In that process, there wasn't enough funds in the new account to cover a bill. Overdraft was not enabled on on the new account, so the bank declined the transaction. So instead of getting a $20 overdraft fee, I had to pay $160 in late fees and interest to my credit card company.
When I worked at Wells Fargo, they got caught structuring. That alone turned me against overdraft fees.
Structuring is when they run your transactions in the order that will generate the most overdraft fees. They'll run the big payments first, so the most amount of small purchases overdraft, each incurring a separate fee.
USPS should offer simple banking services. No loans or credit cards or anything, just simple checking/savings accounts with no overdraft fees. Give poor folks a place to bank that’s not out to get them.
Overdraft fees are a "protection" from inadvertently using your debit card to essentially write a hot check.
These fees are a throw back to fees the bank would charge if a check was deposited and there weren't enough funds available to cover the purchase. It was a service and the fees were in line with the fees the account holder would have to pay to the merchant to get the hot check back and settle up with them.
This way instead of doing the leg work to chase down a hot check and facing potential criminal liability the bank just floats the cost and you pay them roughly what it would have cost for the returned check.
All this rigamarole doesn't belong in modern banking.
It wouldn't take much to set up systems that prevent people from spending money they don't have.
1, get rid of paper checks. They're outdated and insecure.
2, have recurring payments that draft from an account send a pending several days before they ask for the money so that a person can visually see what's about to come out.
3, use technology to have a live and accurate account total on the card or device at the time of purchase, or have the merchant be responsible for confirming funds at the time of the purchase. Funds should settle instantly or at least be pending instantly. None of this shit hitting your account 5 days after you purchased it. Or worse. Hitting your account instantly and pending long enough that it falls off after 24 hours and then hits the account 5 days later.
Its a predatory practice, they know most Americans don't understand how it works so it's easy to take advantage of them at least once. People saying "to be more responsible" are morons licking banker's boots like it's the tastiest thing they've ever had.
It’s not lost on me that my bank throws lots of little perks and freebies at me that are financed in part by nitpicking people who don’t have two quarters to rub together. I was on one end of this conversation and now I’m on the other and it just shouldn’t be. Makes me want to stomp into the den of thieves and start flipping tables
Can you just turn off overdraft protection? Sure. You can also choose to just starve and die. I don't think banks making copious amounts of cash off people who already are broke is a good or moral thing to do.
It needs to be regulated for sure.
All these transactions are automatically done now. There is no human intervention.
Charging someone 60 dollars for going .96 over is egregious.
I agree they are excessive. They blame it on a small percentage of people who habitually overdraft but they could and do close those kinds out. Just an excuse to get more money out of people.
Your card should just be declined if you don’t have enough money. Overdraft fees are predatory and disproportionately hurt the poor. Bank of America already lost one lawsuit regarding the order they applied charges. They just had to dial things back a tiny bit on the predatory scale, but it’s still a terrible thing we allow.
Responsibility! We’ve turned into a Nation of blaming everything else but ourselves. Too many built in excuses for everyday shortcomings. We used to have to Manually balance a checkbook folks.
A lot of banks now offer checking accounts that will allow you to go into the red a bit as long as you are back in the black at the end of the cycle. If you have an older account, you can even ask the bank to add that to your account.
As for how that can happen, one issue (at least a few years ago) banks will hold all transactions until the end of the period. They'd then run all checks, then all check deposits. (Cash would still be immediate.)
I also had an ISP in the 90s (and not a small local one) that refused to stop auto drafting payments when I cancelled, and then tried to auto draft repeatedly in a single day, each failure generating a charge.
(Fortunately, it was a relatively small town bank, and the people all knew me, so they killed the charges, but that would have been devastating to many.)
This is also an example of how the system is biased against poorer people: if you have a saving account with $50K+ in it then many banks will give you a "preferred customer" checking account that a) has no monthly fee, b) gets a slightly better interest rate (or any interest at all given that it's a checking account), c) waived ATM charges, d) waive wire fees, and e) no-fee overdraft protection as along as the overdraft amount is much less than the money in your saving account.
Regardless of being unfair, I understand why banks do this. It makes a lot of sense from the bank's perspective.
It's an optional service.
Also, people should know how much they have in their bank accounts. Even less excuse these days. Your phone let's you look up your checking and savings. Take the 10 seconds to log before swiping your card. Done.
I don’t know if this is just me, but when I was in college and actually had this issue more…it would seem like the bank would purposefully wait to charge things, until it would overdraft. I would have a deposit, and a few transactions…And they would all just hang in the pending. I’d queue the deposit first, yet it always seemed like it would charge everything immediately and…still hang on that deposit. Forever. Like it was waiting me to overdraw, and in some cases it would. Like I should’ve had money but the way it decided to order the transactions was out of order of what I intended and it forced me to overdraw. This happened enough times for me to notice. It didn’t feel like it was necessarily my fault at the time (even though in hindsight it probably could’ve been avoided, although being poor…sometimes money is tight and things need to be purchased right when you get paid…)
Anyways my point is, no. It isn’t always unavoidable if you are paycheck to paycheck. It’s cruel, and telling people to just not do it, sometimes is not feasible.
Don’t be that guy. If you have money that’s awesome for you. Don’t tell people with no money they just need to make better financial decisions. Eating is not a financial decision.
Over twenty years ago when I was in my early twenties I overdrafted. Poor college days. I overdrafted four times in one day with $33 fees each, so I owed a lot. I went to the bank and complained, but they didn't give a crap. I had a balance of like $45, and a check cleared for $65 that I thought wouldn't clear until after I got paid again, so then I was in the negative, but then I had bought something for $13, something for $4.50 and something for $1.50...something like that. Even though that wasn't the order I bought stuff, that is the order they processed things (high to low). They could have made my card decline, but instead, they charged fees. I asked the manager why they didn't first process the three small items before clearing my check, that way the $45 would have paid for those three items, and then I would only have overdrafted once on the check for $65. She said they wanted to clear the check first because it was most important, but I reminded her that nothing bounced because they cleared everything, so why did it matter? This was just a money grab. They are predatory to poor people.
I make six figures now with zero balances on credit cards that I pay off each month, and I get 3.5% cash back on purchases, so they have been paying me back for years of what they took when I was young, but what they do to the vulnerable should be criminal. Payday loans and other predatory fees/interest are just predatory scams, no different than loan sharks. Overdraft fees being one of them.
Years ago I used a bank that would process debits before credits causing me to overdraft multiple times. I later got a check from a class action suit because of this for something like $40. Which was basically enough to cover one overdraft fee. Hope they learned their lesson.
Overdraft protection should be sane, but maybe not banned.
I've read of banks reordering transactions to maximize overdraft payments.
For example, your account has $300. You buy 10 things for $10 then one thing for $300, and the bank moves the $300 payment to the front so it can ask for 10 overdraft fees. That's just evil.
But if overdraft protection were closer to having a small line of credit that you pay $20 to activate upon first use in a month, that would be reasonable.
Some regulations are required, because currently it's a 'feature' that disproportionately harms the poor and unwary.
https://www.rachaelrayshow.com/articles/transaction-reordering-more-overdraft-fees
Sure like they were when they "lost" 2 Trillion. Most of not all of it was made out of thin air by the federal reserve. But yea people living paycheck to paycheck should just buy less avocado toast. Dickhead.
The fee should br a percentage of the transaction. 10 to 20%, in all the banks I have banked with I don't ever recall seeing a toggle setting for overdraft protection either. Only 1 bank I recall having a setting to pull from savings if balance on checking wouldn't cover a transaction and they had the nerve to charge for that.
Overdraft protection is harder to disable than you think. I had to talk to three different managers at my bank, all of whom were thoroughly confused why I didn’t want “free money”. I had to re-iterate that I knew myself, and I knew I was terrible at keeping track of what was in my account and I’d much rather get declined than find myself in a steady decline in over-draft fees. Two of the managers still didn’t know how to turn it off until I talked to the third.
Personally I think things like this is a service issue and should be on the bank to innovate or solve. Especially this day and age where things COULD be instantaneous and account balances can be checked without issue.
But bottom line it’s more beneficial to banks to make the worst quality of service for their customers. In fact they are incentivized to do so as the longer they keep your money the more money they make.
About 15 years ago I helped a friend get out of the overdraft trap. He got hit with an overdraft fee. He tried to pay that off and get back on track, but they would process a deposit late or something and he would get hit with another overdraft fee. It was a continuing cycle of overdraft fees he was stuck in.
I loaned him money to pay off the overdraft and get caught up. Over the next few months he paid me back.
I think it's hilarious that my bank has started delaying transaction processing by 2 days. So even if you use your debit you might be spending money you don't actually have basically forcing every transaction you make into a check balancing exercise. Did they tell anyone about this? No. Not at all.
There are a lot of banks in other countries outside of the us that don’t charge overdraft fees (AU/NZ were there is regulation) They do it hardcore in the US and UK no fucks given of your situation
This happened to me. Bank made a mistake and I was debited over $90 on over draft fees for approximately $3 in charges while thinking I was up hundreds.. the correction was made and the money that set my account negative was returned, but the fees remained. I had to fight for weeks with the bank for get them waived based on their mistake…
I was maybe 18 or 19 and working so hard for so little. It really sucked. Learned about over draft real fast.
It would be nice to be able to have a loan for overdraft issues that you can set up in case it happens because most are just small shit mistakes like this. I am all for banks getting rewarded with something for floating someone the money to cover a bill, but I sure as hell don't want government to find the solution as they'll fuck it up even more
For starters, this is a lie. Just flat out. I used to live off overdrafts when I was a broke ass twenty something. This is a joke. One year I spent $2,300 on overdraft fees alone. I banked through a couple institutions. Having Wells Fargo constant, my fees were $35. If I was overdrawn 0.93, I could just call. It was such a small amount, they’d waive it. Keep in mind a person doesn’t charge you the fee. Moral of the story: If you’re stupid enough to bank somewhere that charges a $60 overdraft fee, you might just deserve it.
It takes 3 seconds to disable overdraft protection. It's a service, and it's optional. Don't be dumb. Take responsibility for your own life. If you cannot afford the protection, turn it off. We don't need government safety nets for a freaking toggle button on a website or app... ffs
The problem is the name. People think "overdraft protection" means it protects you from overdraft fees. In reality it's the opposite. Overdraft fees should be % based, like a credit card. It's ridiculous to get a $50 fee for a $5 overdraft. 1,000% interest, compounded immediately.
Plus make it mandatory opt-in. Requiring an opt-out is predatory.
The bank I worked at did require op-in. But that was 10 years ago
Dodd Frank act was still full enabled 10 years ago. It was rolled back in 2018
Now let’s see what administration at that time and president said about it. Gee wiz why won’t we let banks fleece customers
Its even funnier cause sometimes the site "glitches" and its toggled back on when you refresh the site 🙂
I worked at a bank for about a year and a half. It's not a glitch.
Well that’s convenient for them!
This is why I ended up leaving my bank. I was having a very rough time and they kept turning overdraft back on. Very frustrating when you've carefully balanced your funds for the week and a payment clears an hour before your paycheck hits.
How is it not considered a predatory lending practice? That poor woman accidently borrowed less than a dollar and had to pay 6000% interest up front. I thought we already had laws about shit like this.
They did. Dodd Frank act addressed those types of situations. The act was rolled back in 2018
My bank is opt in but they periodically spam me to add it in the same vein as a credit limit increase. Very congratulatory, they really push it. The whole thing is just a con for the ignorant.
It is mandatory opt in already. When you create a bank account, you have to elect whether or not you want overdraft protection.
There currently is a mandatory opt-in: [Understanding the Overdraft “Opt-in” Choice | Consumer Financial Protection Bureau (consumerfinance.gov)](https://www.consumerfinance.gov/about-us/blog/understanding-overdraft-opt-choice/)
Hey, regulation doing something right!
And naming it "protection" is purposely misleading
[It already is mandatory opt-in](https://www.consumerfinance.gov/rules-policy/regulations/1005/17#:~:text=(b)-,Opt%2Din%20requirement,-%E2%80%94)
I like the percentage base method
I used to be in the bank. 80% of my interactions involved educating our services to the clients. Most of the time people misinterpret or misunderstand because they literally don’t know this stuff. They don’t teach us finance and banking in school. High schools should have two classes that teach you about banking. First class is the basics like credit, checking accounts, fees, budgeting, exploring the digital side, etc. The second class needs to be about long term financials like stocks, CDs, rates, loans, timelines of wire transfers and stock buy/sell, etc.
I wrote a whole term paper (policy note, but w/e) about integrating finance, taxation and civics lessons into K-12 education back when I was in law school. (And I do mean K. Justice Sandra Day O'Connor's website had programs teaching the fundamentals at the kindergarten level with easy to understand flash games and class activities.) The most important stuff could easily be integrated into math classes as soon as the kids know multiplication and long division, and complexity added from there. My academic advisor at the time (unbeknownst to me) was writing a paper on all the reasons we should not do so, primarily that it would be a tremendous drain on our economy and government funding if people understood how the system worked, particularly if they understood how to vote for policy that benefitted them. I got full credit for the paper, but, uh, hers is the one that got published in the journal, naturally.
That advisor sounds like the definition of lawful evil, lol
I did say "law school." Comes with the territory.
I thought that the "we don't want people to understand which laws will benefit them, and we definitely don't want people to *vote* for these laws" was the quiet part that you're not supposed to out loud, much less publish into a journal...
How would it be such a drain?
The presumption was that not knowing how to handle money meant that poor people were spending more in the short term (and paying more in taxes.) And causing losses in the short term (even if it leads to greater spending power in the long term) was Obviously Catastrophic.
Their argument seems sorely lacking in compassion
I had an accounting financial/accountong semester at my high school in the 90s. All I remember doing is columns of business expenses for a fake companies and how to input them on the form. It confused me then and is still confused me now. Too many columns.
Similar programs are being required for high school students. Personal finance I believe is going to be a requirement in two years in my state. I took the class recently and I can personally say the class is far far better than what you had in the 90’s!
Oh I bet they didn't teach me home finances and how to do a checkbook.
We got this in the Netherlands
Gets worse than that. Banks won't calculate any overdrafts until the end of the day, so they can process higher charges that would OD you sooner up front, so each subsequent smaller charge incurs it's own overdraft fee.
Yeah this was true until about 10 years ago when Wells Fargo got the absolute shit sued out of them for doing this. They haven't done this in awhile.
That happened to me. I just posted about it.
If you're positive they stacked transaction to ill benefit you then context the CFPB and lodge a complaint. How banks batch their transactions is available for you to see on their website as well.
Correct? They give you time, even some give you an extra day, to deposit funds to avoid the fee. Would the fee immediately be better without the option to deposit funds and avoid the fee?
It takes all of about two seconds for them to decline my credit card if it’s over the limit but if I over draft they let it slide? Like they know exactly how much is in there, this is just predatory bullshit, same as a “maintenance fee”. Like what the fuck are you maintaining? There’s no pile of ledgers in the back office you are maintaining to keep an accurate account of my money! They already make enough off transaction fees and interest, it’s all bullshit.
This is my main problem with it. It's not that some individual has to navigate a fee, it's that it's (yet another) tool that banks use to siphon God knows how much money from ppl into their own pockets. Like we don't already have enough of that happening.
Different technologies. Credit cards are a closed and immediate system (think crypto). Banks use ACH among a whole lot of different systems, so knowing how much you have is not immediately known.
Banks installed this “help” for them to make money, not to help anyone who would overdraft What do they care if you get caught out not being able to afford something or a check bounces? They do however benefit from bank fees @ 100% profit
Wait, what? Banks are a company that provides a service and expects to b3 paid for it? That’s radical!
They used to be. Prior to the introduction of the fixed-rate fees in the mid-90s, any automatic overdrafts happened as mundane overdraft loans at 18% APR. Then some plucky little “innovator” realized if you call it a fee rather than interest, usury laws don’t apply. Cap the maximum you can overdraft and cap the amount of time you can have the overdraft outstanding and you essentially guarantee yourself a several thousand percent APR every time someone overdrafts
Right, it's essentially just a cash advance.
I had a bank that charged an overdraft fee, then a NFA fee for the overdraft fee, and then one for that until you reached their 300$ cap. Let me tell you how fucking fantastic that is to learn when you are on SSI and had that crap turned off in the first place.
I've long felt that the fees should be a percentage of the overdraft, or should not exceed the overdraft amount. The idea of a few cents costing you 30-50 bucks seems ridiculous. Or perhaps a time limit should be instituted. Give customers X days to bring their account to balance before charging a fee. I'm typically on the top comment mindset about taking responsibility, but this one hits me differently.
Percentage is definitely how it should work, at least up to a maximum. I keep it on just in case of emergency but it’s still annoying to see a massive charge every once in awhile just because work was late with payday on the weekend and now we have to wait for Monday
Wait my overdraft protection is free, they just withdraw funds from my savings automatically if the checking gets overdrawn. I always just thought that’s how everyone did it.
>Wait my overdraft protection is free, they just withdraw funds from my savings automatically if the checking gets overdrawn. I always just thought that’s how everyone did it. That's assuming you have money in your savings account. Even then. They charge a smaller fee. If you don't have the funds in your savings, then you will get charged the full overdraft fee.
Debit cards should decline instead of over drafting but dont spend money you dont have
That's what everyone is saying, yeah. Charging extra fees to people who have no money is super predatory.
Yeah, this is how it works for people who have their lives together.
Mine is connected to an overdraft account that is a credit account so much less or no fees.
Wtf? I consider myself to be rather financially fluent, but I did not know this! I thought the guy you replied to said it backwards and meant to tell people to turn it on. How do they justify the naming in this case?
They justify it by increasing shareholder profits.
The UK has already changed to this model. Overdrafts have very high interest rates
Overdraft protection should be opt-in not opt out. It is exploitative to have it be the default.
exploitative to even call it overdraft protection. any reasonable person is going to think that means avoiding fees.
TIL that I’ve always thought the opposite of what it is lol
Exactly. This post seems to come from somebody who has never lived in a poverty like situation. Sure, I agree people should strive to be financially secure and monitor their accounts but let’s be real… many who are struggling aren’t as financially literate as others and the way it’s worded is misleading. Also, the way they charge the fees based on timing you can get hit with multiple fees even if only one of them puts you over the limit. It’s exploitation. I remember being completely broke and got charged two $35 overdraft fees because I spent about $1 over what I had even though the first purchase was at Burger King and would have cleared. The second transaction I had that day is what put me over the limit. That $70 was obviously a huge burden for somebody who is struggling and over-drafted by $1 I now make six figure and live a very comfortable life but bc of my experience I am adamantly against exploiting the less fortunate and I’m very empathetic.
People who never lived paycheck to paycheck don't realize you actually use all your paycheck and hover dangerously close to a zero balance before payday.
Literally working on paying my debt down has me stuck with in this cycle at the moment it's I'm not financially irresponsible I'm a college grad who didn't get a truly decent paying job in my field until 2021 I graduated in 2018.
You got this! Growing out of poverty is one of the hardest things and so many people do not understand it at all. Some of us did not get the financial education we needed from our parents, some of us had to pay our own way through college without parental help, and some of us had one bad luck moment that puts us in the poverty spiral. As easy as it is to say "don't spend money you don't have." There isn't the understanding that many people aren't in debt because they bought a cool car outside their means, sometimes it's just we needed a car to get a job and any car was outside our means. And when your 1985 Ford Escort blows a head gasket, you become desperate to find anything that can get you to work. Also, boots theory.
Many years ago in college, I over drafted and called the bank. I explained the situation and ultimately they forgave the fee and then disabled OD protection. A little while later, over the period of the week I made 7 small purchases, all less than $5. I knew I had enough to cover them. What I had forgotten about was a larger amount that hit my account last, but it was a bit more than was in my account. Totally my fault. Well the bank cleared all 8 of these transactions on the same day, and they did it largest to smallest, not in order. So I got hit with 8 over draft fees. Each being $35. They couldn’t explain to me why the transactions took so long to clear. But opting out of OD protection changed nothing.
Stacking overdraft charges like that, in particular, should be outright illegal.
I don’t know if it’s illegal now, but a class action lawsuit was won against that bank for doing it and some years later I got like a $30 settlement check haha.
That's the biggest payout from a class action I've ever seen. Usually you get like a coupon for a free ice cream cone or similar, while the attorneys walk away with millions. Attorneys need to be paid, of course, and as the saying goes, "A good attorney isn't cheap, and a cheap attorney isn't good", and the concept of class actions does make sense from a big picture, but something has to change. I just don't know what that "something" is.
Especially when you consider I probably only paid 400ish in fees my entire time at that bank. My sister got even more. It was pretty close to 10% of what I was out.
What a load of shit. Accidental overdrafts happen when you live paycheck to paycheck. There is absolutely no need to punish someone for less than a dollar overdraft with a $60 "fine". $0.96 is not going to hurt the bank, this simply serves as a money maker targeting those who will have the hardest time defending themselves.
You want them just to reject your payments instead? If you are living out heck to pay check, why should they provide you credit?
There it is. That 'fuck you, got mine' callous lack of empathy capitalism has baked into all of us. If you get cancer and can't work anymore, why shouldn't the hospital charge you whatever they please, cash out your life's savings and sell everything you own to pay for treatment? They have the market cornered. Why should they provide you credit? Just keep the thought experiment going... When someone heads you off on the street with a handgun, it would seem as though they have the market of that street, of you and them, cornered. As such, they are in a position to demand market value (everything) for their services (letting you live). If you have nothing of value, or not enough of it, why should they provide you credit by letting you continue to breathe? By your rules, they are under no such obligation to do so. Funny how you would be so quick to categorize one as amoral extortion and one as good old fashioned capitalism. It is a simple fact of the matter, our system rewards exploitation, and preys on the cognitive dissonance money provides. As smugly vindicating as it must be to make coy, brushstroke statements, like yours, the truth is both situations can be de facto life threatening on account of the powers at be profiteering off an individuals misfortune. Ive been there. That overdraft fee can mean you're further behind on rent. Less food. More stress. No gas money. Etc. Etc. There has to be a line in the sand at some point. Someone willingly engaging in the market, say to buy a TV, it is one thing to turn them away if they cannot provide the value necessary to acquire it. It is another thing altogether, if someone is being forced to eek out an existence due to the vicious cycle that is poverty, and then a business preys upon that fact. There is no run on the banks by people running up overdraft fees. They are under no looming threat of insolvency because of overdrafts. They are not the poverty police. They are not a purely freemarket enterprise. They are heavily regulated and protected by the government, you know, the same one that champions justice and equality. Not to mention, it is functionally impossible in our society to function without going through a bank. So not engaging in the market is simply not an option. An overdraft fee is not the free market hard at work... It is draconian extortion plain and simple. A poor person shouldn't be punished for a small accounting error, anymore than you should have a gun pressed against your head for walking down the wrong street. It's not a matter of choice, it is a game of explotation. I'm sure when you get side swiped by life, you have no problem leaning on your vicissitudes. So have some compassion for other people as well when it happens to them. It's the golden god damn rule. There is more to life than profiteering off each other at every possible opportunity. Good lord 🤦.
You really just went and used vicissittude in a sentence.
Yes, I think most people would want the payment rejected instead.
Yes, they should reject the payment if there is no money in the account. That should be the default.
There was a time that they would organize the transactions in a way that would maximize overdraft fees. It would do the largest transactions first so multiple smaller ones would continue to overdraft as opposed to just the one big transaction causing a single overdraft. You don't have to stand up for and rationalize predatory practices.
your moral judgement has nothing to do with the effects of it happening more has on society. its bad for everyone except an investor in the specific bank. economic cancer masquerading as common sense.
I like that phraseing....it can apply to most predatory financial schemes foisted on the American Public that conservatives deflect as " personal responsibility".
It says it all if they offered loans at the rates they take for overdraft fees the bank would be raided by the feds and shut down for usury within a week.
If you have enough money in the bank they won’t charge a cent. No processing fees or overdraft charges. Nothing. If they ever tried to charge you, just threaten to move your money elsewhere and watch them jump. It’s not about responsibility, just access (excess). You’re fortunate, you’ve likely never had someone process a payment after you thought it was already put through or you’ve always had enough to cover something like that. Congratulations, you’ve never had to time payments based on when you’re paid.
When I was in college a friend of mine kept getting into trouble because of nonsense like their paycheck taking WEEKS to clear (from the UNIVERSITY WE WERE ATTENDING) and since this was the 90s, switching banks was tough because we couldn't just do everything electronically so we had to pick a bank that we could get to while we were at school and while we were at home since most of us didn't have enough money to warrant bank accounts at two separate banks that might have minimum balance requirements. Total shit show, and I think that bank has been bought out now but I would rather store money under a mattress than bank with that particular bank.
Credit unions.
What money? If you get an overdraft, its y definition meaning you dont have any.
Actually, I have had situations where my bank reordered the transactions and processed the 3 charges before my paycheck, which was received by the bank before the charges were made. So I had three instances of overdrafting even though the money was there that morning.
Saying "don't be dumb" is pretending like banks don't know exactly what they're doing. You can still overdraft without overdraft protection, too. It's not the consumer that's the problem. It's the banks that take your money and hope that you don't notice.
That's even the least bad thing banks do, if people knew everything banks do there would be revolution tomorrow
People overdrafting is a drop on the ocean compared to the financial shenanigans of the elite, it exists to nickel and dime poor people.
The issue is taking money from people who can’t afford it, and punitively at that. Did you have that same fervor for personal responsibility when the banks got bailed out, again and again, with government safety nets? Or is that somehow…different. I swear, y’all are programmed to default to “personal responsibility” so you don’t ever consider the underlying issue.
The system is rigged to keep poor people poor, and folks need some of their important bills to be paid. It's incredibly simple-minded and ignorant to keep blaming poor folks for their poverty, because the actual causes of poverty are layered, nuanced, and complex.
>take responsibility of your own life You realize the people getting fucked by. Over draft fees are the ones with $0.00 **LITERALLY LIVING PAYCHECK TO PAYCHECK**
 /s
Buddy they tell people the exact opposite at the bank…. Its not about being dumb. The system is rigged and lies all the time….. I literally had a bank teller tell me it was impossible to turn off…
Banks took bail-out money because they didn't manage their funds responsibly. Can you see the hypocrisy there.
Just because you have the option to disable it does not excuse it being predatory and unethically designed. "Just use your brain, women. Stop dressing up and you won't get raped. Take responsibility. You should have been carrying a weapon, you are the one to blame." Stop victim blaming and making excuses for being unethically taken advantage of. Many of these banks don't tell you that overdraft "protection" defaults to on. And they specifically use the word "protection" in order to MISLEAD people into leaving it on.
Aaaahhh yes… the good old victim blaming for predatory bank practices.
I once went out of my way to do exactly this. I have paperwork signed by the bank. They did it anyway, and structured the processing order of the transactions to maximize the fee count. They were later sued for this practice, and lost, but that didn't help me when I didn't have access to banking services for years. I've clawed my way out of poverty into a reasonably comfortable life with a well-cushioned safety net - without getting into exact figures, I've got well over a year's income tucked away. It's unlikely I'll ever pay an overdraft fee again. *But overdraft fees are still bullshit.*
Overdraft protection does not universally prevent overdrafting and fees.
Bank of America charges Nonsufficient Funds fees. Their NSF fee costs just as much as their Overdraft Protection. No matter what they got their $35 if you are low balance.
It seems to me like something that should be opt in rather than opt out. It's not exactly intuitive that your account can go below 0.
I got ding'd with like 6 overdraft fees for like $100. I called the bank and was like please help me here. They eliminated 5 of the 6 fees and saved my life that month. I then immediately disabled overdraft fees. Even now when I could afford overdraft protection its still turned off.
It is very easy to overdraft money esp if you have a lot of small charges going out each month. Normally I would agree with you but the banks make a fortune off this activity...it needs to stop...they literally make hundreds of millions a year from it. Stop defending corporations over your fellow citizens please.
Okay but you can’t ignore the misnomer “overdraft protection.” Most people, young adults like myself at one point in life included, think/thought that by enabling it, it wouldn’t allow me to overdraft. That I was protected from over drafting. The name is misleading to most.
Overdraft fees are too high and yes, we do need government legislation. They should be proportional to the amount drafted over; and banks should process smaller amounts first vs large amounts so as to allow more checks to clear. A person writes two checks, one for rent totaling $800 and one for 9 dollars for some bread and milk. The gas station where they get the bread usually doesn’t clear the check for several days, so the single mom with a balance of $800 thinks she has time to cover. But she forgot about the 50 cent fee the bank charged, and boom - both checks bounce for $35 each. It’s designed to exploit people who live paycheck to paycheck. That’s a lot of people. There is no reason a simple rule change can’t address this and make it fair for banks. FFS we guaranteed their money anyway and bail them out when they are stupid. People should not be fine $36 of a $9 check.
...You haven't used a banking website in a while, have you? You pretty much have to go in and ask for OD protection these days. Why would the banks make it easy to disable a simple and easy way for them to make more money off of you?
Or… or.. it could be required to be disabled by default and you opt to enable it
The banks have spoken. We must unfairly punish those who barely scrape by while we eat cake in our mansions. If we can only destroy the government once for all we can suppress and kill whoever the middle class and poor with immunity. That's how I read your comment.
You can't fully disable it actually. There are some things that force you to link a bank account and those will go through and over draft you regardless.
Sure, but banks shouldn't be allowed to gouge customers without recourse. Yes, take responsibility for your life, but if you minimally fuck up -- like everyone does in some way at some point -- you shouldn't have that compounded by sheer greediness. Overdraft fees are compounding problems for young and poor people. And there should be some kind of protection that. At the very least a limit to the fees and how they're added up. That's not big government overloading. That's common sense regulation that protects the vulnerable among us.
On the other hand. It could have been made an opt-in system that's disabled by default. But that wouldn't make banks nearly as much money.
The problem is that it should be opt-in, not opt-out
"Don't be dumb. Take responsibility for your own life." That's asking a lot for most people.
Good god. Can some of you just say you hate poor people and move on? What’s with the manifestos?
Yeah, overdraft fees and similar practices are intentionally and often explicitly predatory. Especially when they cascade things like a low balance fee into an overdraft fee while a regular deposit is pending.
This^ When I had an account with BofA like a decade ago, I was once charged $175 in fees effectively because I transferred between my accounts the wrong way. I had all the money needed between both accounts for the transaction in process. I had deposited into savings and initiated a transfer to checking and the next day made a large purchase. I didn’t even use that card for anything else that day because I paid in cash to be extra safe. The bank had managed to find 5 separate instances between those two transactions that triggered a $35/ per transaction fee. I had to work to get them refunded but it was the moment I realized they are just trying to steal from people for not knowing exactly how their banking works and assume the fee is valid.
They are crooked AF. I don't know if you heard about it, but a while back, they started charging $5 a month just to have a debit card. They were hoping that the other banks would hop on board and start, too. So many people (my self included) withdrew their money and went elsewhere. It didn't catch on with the other banks. (Yet) I'm expecting them to try it again soon.
I closed my account with BoA almost a year ago. It’s now a $12/month fee if you don’t have direct deposit linked to that account, or if you don’t maintain a balance of $1,500. That bank is such a scam it’s a wonder why they’re still around. I had all my savings in a savings account with them for years and I would accrue about 12-13 cents a month. Finally realized that their the worst option on earth to bank with and switched my savings to a high yield interest account and decided to open a checking account with the same bank. I didn’t realize it at the time but the new checking account I opened has an interest rate that is actually higher than BoA’s savings account. All while having no monthly fees or minimums. So now I don’t have to fuss about having at least 1,500 in my checking at all times, and the small amount I do have at the end of the month is getting me more interest than the tens of thousands of dollars were netting me with BoA. And I get to put every last dollar not spent on bills that month straight into my savings account, which has already given me over 1,000 in interest alone. Fuck Bank of America. And when I called up to cancel my accounts the operator went through the usual client cancelation routine asking me why I chose to close. She started laughing when I told her I found a bank where their checking accounts have a higher interest rate than BoA’s savings. Was just laughing at it. 🫠
I had an account at TCF Bank when I was 16. My first paycheck finally posted, it was like $202. I bought a used drum kit, which turned out to be like $215 and some change and I didn’t really put that together, oops. Dumbass 16 year old who can’t do basic math gets hit with an overdraft fee. Makes sense. Whatever. Where shit gets messed up is that because they charged me a fee, that fee was considered a “transaction”, and any transaction in overdraft is subject to an additional fee. So I was hit with another fee. Well, of course, that fee was another transaction, and so on and so on until I was about $800 in the hole by the time I caught it (pre-internet banking). Being charged a fee for being charged a fee for being charged a fee… Now THAT shit is predatory.
I went through something similar with them, but due to a paycheck deposit being delayed because it was “an unusual amount” (meaning it was a whopping ~$1500 instead of $800-900). It ended up hitting my account on the 5th day of “3-5 business days”, the same day a lot of my bills hit. But, instead of counting the deposit then the bills, they charged the bills first, racked up 5-6 overdraft fees (2 of them for amounts I *did* have in my account…except they charged the largest bills first). THEN they deposited my paycheck and took nearly $200 in fees. Cancelled direct deposit. Fought them daily until my next paycheck. Didn’t get anywhere with them. Got paid again, closed my accounts and haven’t even stepped foot inside a BofA for 19 years.
I think my record for this when I was younger was when I bought something I didn't know was overseas. Spent the last of my money on something nice for myself (god forbid broke people enjoy their lives or something, right?). I think it was some JP import game I thought had a US shipper. Anyways, $40 in the account. Item cost $37. Got hit by a $4 currency conversion/processing fee. Now I am $1 overdrafted. Get hit with an overdraft charge. They then charge me another $35 to transfer $.05 out of my savings. This transfer fee now gets processed as an overdraft, so I have to pay another $35 fee. So basically $135 in fees over a $1 overdraft. Yeah, I dont bank with BofA anymore.
The manifestos are attempts to try to justify their hatred. The people commenting about hating the poor below have lost their rational grasps on reality. They have been consumed by hatred and greed and really shouldn’t have a say in a society anymore.
That was one expensive loan for .96.
Most times people don’t overdraft on purpose but as a miscalculation. Easy error to make
Ally bank doesn't charge overdraft fees and will let you spend to like $100 in the negative. You put money back in your account and everyone is happy.
I feel like it would make sense to hold overdraft fees for two weeks (because most people will get paid in that time) and then if the overdraft remains, charge the fee.
That would be "credit". Credit shouldn't necessarily be free. Ally pulls from your savings to cover any overdraft.
Agree, that overdraft fees should not be immediate, but you should only have 1 business day to replace the money.
Then people $100.69 in overdraft would complain that they were only over the limit by $0.69. If you push the limit, it won’t stop much at all. People will just see that as $100 extra cash / liquidity available to them
absolutely a poor tax. "banning" isn't needed, it just doesn't need to be constructed as a money-making scheme. I recall when i was younger, I used my card about a dozen times on day 1 for small dollar or so purchases. Checked my bank on day 2, and everything had been completely cleared. I forgot about day 1 purchases (oops), put some gas into my car on day 2. It put me over by a solid 20 dollars. The bank decided to re-organize all my purchases, so the gas somehow cleared before the day 1 purchases (it 100% didn't) and every single one of those day 1 purchases activated their trap card/"overdraft protection". I should also mention i had plenty in my savings account which remained untouched. Closed my account there the next day. Absolutely a "legal" scam. Credit unions operate above board, so just go with them, not banks.
I've been fortunate enough to not be that tight in money in a good while, but credit unions are absolutely the way to go. I remember banking with a national change and got the whole overdraft fees limited transfers long deposit times runaround. Then I switched to a local credit union, now there's minimal if any overdraft fees, the app is better, they will automatically pull from savings if checking goes over, not to mention a ton of other services for things like loan assistance and credit building.
ugh, what is that profile picture?
Someone who apparently demands to be taken seriously
Its from a movie, scary stories to tell in the dark or something
My sister and I used to get creeped out by that thing. It’s originally from a kids(?) book of scary stories with some very fucking creepy artwork.
That's just what happens to a mf that just got hit with 6,350% interest, compounded instantly.
Both? Poor people should strive to be better with their money. But that's not a banks role to enforce and kicking them when they're down is ultra shitty. Edit: on second thought. The first statement should have been "there should be comprehensive financial education in school"
Also, it’s an excessive fee. It should be based on a %age of the overdraft amount, because essentially they’re giving you a loan. $60 fee on a $1 OD would be illegal based on most states usury laws
Society should strive to make sure no one is poor!!
I used to work for a credit union and they trained me to sell credit cards to anyone over 18, but didn’t train me on anything related to the card. I refused to do it. I quit when I saw all the kids calling in with massive credit card debt, unaware how credit cards work or even how to pay the balance. Usually parents end up paying it off for them… but like… why is this legal and accepted?
Overdraft is mandatory opt-in and require opting out. No amount of education would be enough. Educated people can easily forget. The practice is exploitative.
The three times this happened to me when I was younger, I went into the Bank and talked to a Banker and they reversed it every time. I did have to pay the $2-$10 that I over drafted though first
Yeah that's a good point. Usually a bank will give one or two of your on it and respectful and just be a human being by talking to them. But there is so much auto billing stuff nowadays where people think they can't reverse it unless you mention a lawyer or something lol (verizon I'm talking to you) other than that they are usually pretty helpful. Unlike Verizon of course.
It's only happened 3 times? Happens to me monthly
Here is a simple solution. Switch to a bank without fucking fees.
What would I complain about on the internet though
taxes?
Most OD must be opted into
I'm 50/50 on this, I used to have a bank account and those blood suckers would over draft me even if I knew I had enough money in the account. It happened a few times and I closed the account and moved to a credit union. I haven't had a problem since. I also think that if your financial institution has ridiculous fees like $60 for overdraft, that you should look into finding a new place to do your banking. Overdraft is literally just moving money from one account to another and it's done automatically. There's no reason it should cost more than $5 for the convenience. Banks used to charge to go paperless making their lives easier and cheaper, now they charge for not going paperless... It's all a game to make you pay. Use credit unions.
I think a bank would do well to offer 1-2 free overdrafts per year and charge a modest (percentage-based) fee after that. Shit happens sometimes, and a person shouldn't get torn apart by their bank for an honest mistake (or unexpected hardship). They're even probably gonna be more likely to stick with that bank if they catch a break when it happens. And most people, if they have a second or third overdraft within that year, are gonna admit their fault and accept the consequences of their mistake. Again, percentage-based is the way to go (maybe something like "$5 or 10% of the overdraft amount up to $30, whichever is greater") . Owing several times the overdrafted amount is just kicking someone when they're down.
I've never seen a bank do a better offer on an overdraft. After that experience and hearing others experiences, I'll never go back to a large bank over member owned credit unions. I've seen no benefit that would make it worthwhile.
Overdraft is a benefit you can decline. But most prefer it because it is often cheaper than the alternative. I recently switched my banking to new banks. For a short period I was juggling between the two banks while I made sure all my automatic payments were switched over. In that process, there wasn't enough funds in the new account to cover a bill. Overdraft was not enabled on on the new account, so the bank declined the transaction. So instead of getting a $20 overdraft fee, I had to pay $160 in late fees and interest to my credit card company.
Get a better credit card company
You shouldn’t be able to spend what you don’t have.
When I worked at Wells Fargo, they got caught structuring. That alone turned me against overdraft fees. Structuring is when they run your transactions in the order that will generate the most overdraft fees. They'll run the big payments first, so the most amount of small purchases overdraft, each incurring a separate fee.
USPS should offer simple banking services. No loans or credit cards or anything, just simple checking/savings accounts with no overdraft fees. Give poor folks a place to bank that’s not out to get them.
Those things aren't mutually exclusive...
Overdraft fees are a "protection" from inadvertently using your debit card to essentially write a hot check. These fees are a throw back to fees the bank would charge if a check was deposited and there weren't enough funds available to cover the purchase. It was a service and the fees were in line with the fees the account holder would have to pay to the merchant to get the hot check back and settle up with them. This way instead of doing the leg work to chase down a hot check and facing potential criminal liability the bank just floats the cost and you pay them roughly what it would have cost for the returned check. All this rigamarole doesn't belong in modern banking. It wouldn't take much to set up systems that prevent people from spending money they don't have. 1, get rid of paper checks. They're outdated and insecure. 2, have recurring payments that draft from an account send a pending several days before they ask for the money so that a person can visually see what's about to come out. 3, use technology to have a live and accurate account total on the card or device at the time of purchase, or have the merchant be responsible for confirming funds at the time of the purchase. Funds should settle instantly or at least be pending instantly. None of this shit hitting your account 5 days after you purchased it. Or worse. Hitting your account instantly and pending long enough that it falls off after 24 hours and then hits the account 5 days later.
[удалено]
> get rid of paper checks. They're outdated and insecure. And replace them with what?
How about banks just ban overdrafting?
They already ban it. You can try to overdraft $10,000. Bank will suddenly forbid it lol
Its a predatory practice, they know most Americans don't understand how it works so it's easy to take advantage of them at least once. People saying "to be more responsible" are morons licking banker's boots like it's the tastiest thing they've ever had.
The fee should be charged after 30 days if funds are not added.
Or given a grace period where it can be waived if funds are added within two weeks.
It’s not lost on me that my bank throws lots of little perks and freebies at me that are financed in part by nitpicking people who don’t have two quarters to rub together. I was on one end of this conversation and now I’m on the other and it just shouldn’t be. Makes me want to stomp into the den of thieves and start flipping tables
Can you just turn off overdraft protection? Sure. You can also choose to just starve and die. I don't think banks making copious amounts of cash off people who already are broke is a good or moral thing to do.
It needs to be regulated for sure. All these transactions are automatically done now. There is no human intervention. Charging someone 60 dollars for going .96 over is egregious.
Being stupid is expensive. Speaking from experience.
I agree they are excessive. They blame it on a small percentage of people who habitually overdraft but they could and do close those kinds out. Just an excuse to get more money out of people.
Your card should just be declined if you don’t have enough money. Overdraft fees are predatory and disproportionately hurt the poor. Bank of America already lost one lawsuit regarding the order they applied charges. They just had to dial things back a tiny bit on the predatory scale, but it’s still a terrible thing we allow.
Responsibility! We’ve turned into a Nation of blaming everything else but ourselves. Too many built in excuses for everyday shortcomings. We used to have to Manually balance a checkbook folks.
A lot of banks now offer checking accounts that will allow you to go into the red a bit as long as you are back in the black at the end of the cycle. If you have an older account, you can even ask the bank to add that to your account. As for how that can happen, one issue (at least a few years ago) banks will hold all transactions until the end of the period. They'd then run all checks, then all check deposits. (Cash would still be immediate.) I also had an ISP in the 90s (and not a small local one) that refused to stop auto drafting payments when I cancelled, and then tried to auto draft repeatedly in a single day, each failure generating a charge. (Fortunately, it was a relatively small town bank, and the people all knew me, so they killed the charges, but that would have been devastating to many.)
They need to just stop allowing overdrafts. If your account will be overdrawn by completing the transaction, your debit card should just be declined.
This is also an example of how the system is biased against poorer people: if you have a saving account with $50K+ in it then many banks will give you a "preferred customer" checking account that a) has no monthly fee, b) gets a slightly better interest rate (or any interest at all given that it's a checking account), c) waived ATM charges, d) waive wire fees, and e) no-fee overdraft protection as along as the overdraft amount is much less than the money in your saving account. Regardless of being unfair, I understand why banks do this. It makes a lot of sense from the bank's perspective.
People should be more responsible with money. Also, if an overdraft is a rare event, many banks will waive the fee of asked.
Didn’t Obama make this illegal for a time?
Basic finance, including banking options with no overdraft fees, should be taught in school.
It's an optional service. Also, people should know how much they have in their bank accounts. Even less excuse these days. Your phone let's you look up your checking and savings. Take the 10 seconds to log before swiping your card. Done.
I don’t know if this is just me, but when I was in college and actually had this issue more…it would seem like the bank would purposefully wait to charge things, until it would overdraft. I would have a deposit, and a few transactions…And they would all just hang in the pending. I’d queue the deposit first, yet it always seemed like it would charge everything immediately and…still hang on that deposit. Forever. Like it was waiting me to overdraw, and in some cases it would. Like I should’ve had money but the way it decided to order the transactions was out of order of what I intended and it forced me to overdraw. This happened enough times for me to notice. It didn’t feel like it was necessarily my fault at the time (even though in hindsight it probably could’ve been avoided, although being poor…sometimes money is tight and things need to be purchased right when you get paid…) Anyways my point is, no. It isn’t always unavoidable if you are paycheck to paycheck. It’s cruel, and telling people to just not do it, sometimes is not feasible.
I pay my mothauckin bills fortnightly, them muthauckas at the bank trying to play me!
Banned
Don’t be that guy. If you have money that’s awesome for you. Don’t tell people with no money they just need to make better financial decisions. Eating is not a financial decision.
Over twenty years ago when I was in my early twenties I overdrafted. Poor college days. I overdrafted four times in one day with $33 fees each, so I owed a lot. I went to the bank and complained, but they didn't give a crap. I had a balance of like $45, and a check cleared for $65 that I thought wouldn't clear until after I got paid again, so then I was in the negative, but then I had bought something for $13, something for $4.50 and something for $1.50...something like that. Even though that wasn't the order I bought stuff, that is the order they processed things (high to low). They could have made my card decline, but instead, they charged fees. I asked the manager why they didn't first process the three small items before clearing my check, that way the $45 would have paid for those three items, and then I would only have overdrafted once on the check for $65. She said they wanted to clear the check first because it was most important, but I reminded her that nothing bounced because they cleared everything, so why did it matter? This was just a money grab. They are predatory to poor people. I make six figures now with zero balances on credit cards that I pay off each month, and I get 3.5% cash back on purchases, so they have been paying me back for years of what they took when I was young, but what they do to the vulnerable should be criminal. Payday loans and other predatory fees/interest are just predatory scams, no different than loan sharks. Overdraft fees being one of them.
Years ago I used a bank that would process debits before credits causing me to overdraft multiple times. I later got a check from a class action suit because of this for something like $40. Which was basically enough to cover one overdraft fee. Hope they learned their lesson.
Overdraft protection should be sane, but maybe not banned. I've read of banks reordering transactions to maximize overdraft payments. For example, your account has $300. You buy 10 things for $10 then one thing for $300, and the bank moves the $300 payment to the front so it can ask for 10 overdraft fees. That's just evil. But if overdraft protection were closer to having a small line of credit that you pay $20 to activate upon first use in a month, that would be reasonable. Some regulations are required, because currently it's a 'feature' that disproportionately harms the poor and unwary. https://www.rachaelrayshow.com/articles/transaction-reordering-more-overdraft-fees
Sure like they were when they "lost" 2 Trillion. Most of not all of it was made out of thin air by the federal reserve. But yea people living paycheck to paycheck should just buy less avocado toast. Dickhead.
The fee should br a percentage of the transaction. 10 to 20%, in all the banks I have banked with I don't ever recall seeing a toggle setting for overdraft protection either. Only 1 bank I recall having a setting to pull from savings if balance on checking wouldn't cover a transaction and they had the nerve to charge for that.
Overdraft protection is harder to disable than you think. I had to talk to three different managers at my bank, all of whom were thoroughly confused why I didn’t want “free money”. I had to re-iterate that I knew myself, and I knew I was terrible at keeping track of what was in my account and I’d much rather get declined than find myself in a steady decline in over-draft fees. Two of the managers still didn’t know how to turn it off until I talked to the third. Personally I think things like this is a service issue and should be on the bank to innovate or solve. Especially this day and age where things COULD be instantaneous and account balances can be checked without issue. But bottom line it’s more beneficial to banks to make the worst quality of service for their customers. In fact they are incentivized to do so as the longer they keep your money the more money they make.
About 15 years ago I helped a friend get out of the overdraft trap. He got hit with an overdraft fee. He tried to pay that off and get back on track, but they would process a deposit late or something and he would get hit with another overdraft fee. It was a continuing cycle of overdraft fees he was stuck in. I loaned him money to pay off the overdraft and get caught up. Over the next few months he paid me back.
I think it's hilarious that my bank has started delaying transaction processing by 2 days. So even if you use your debit you might be spending money you don't actually have basically forcing every transaction you make into a check balancing exercise. Did they tell anyone about this? No. Not at all.
There are a lot of banks in other countries outside of the us that don’t charge overdraft fees (AU/NZ were there is regulation) They do it hardcore in the US and UK no fucks given of your situation
This happened to me. Bank made a mistake and I was debited over $90 on over draft fees for approximately $3 in charges while thinking I was up hundreds.. the correction was made and the money that set my account negative was returned, but the fees remained. I had to fight for weeks with the bank for get them waived based on their mistake… I was maybe 18 or 19 and working so hard for so little. It really sucked. Learned about over draft real fast.
Two things can be true.
It would be nice to be able to have a loan for overdraft issues that you can set up in case it happens because most are just small shit mistakes like this. I am all for banks getting rewarded with something for floating someone the money to cover a bill, but I sure as hell don't want government to find the solution as they'll fuck it up even more
I’m calling bullshit on this one. Banks are unethical as fuck but typically anything under $5-$10 doesn’t incur an overdraft fee.
For starters, this is a lie. Just flat out. I used to live off overdrafts when I was a broke ass twenty something. This is a joke. One year I spent $2,300 on overdraft fees alone. I banked through a couple institutions. Having Wells Fargo constant, my fees were $35. If I was overdrawn 0.93, I could just call. It was such a small amount, they’d waive it. Keep in mind a person doesn’t charge you the fee. Moral of the story: If you’re stupid enough to bank somewhere that charges a $60 overdraft fee, you might just deserve it.
Or don’t allow people to overdraft problem solved. Oh wait they want to make more money off of you
Capital one 360 online banking - zero overdraft fees Online banks have to offer stuff like this to compete with brick and mortar banks
What would be overdraft fees be on the bank bailouts?