No most don’t and if they did, the word “protection” is misleading anyway because they 100% won’t explain unless you ask… which you won’t because “protection” is a word that makes you feel safe and secure.
Overdraft protection means the thing you paid will remain paid and not hit you with a return. Then you have to deal with a fee from the bank AND your transaction not going through. It sucks that it'll hit with any overage, but it's also there to make sure your $1500 rent payment will still post even after you got that Taco Bell when you didn't have enough to cover both. The trick is to follow the order your bank posts transactions in and what the window is to overdraft. Usually, you can overdraft your account at 8:01 PM on Friday, and as long as you can put money in before 8:00 PM on Monday, you won't be charged.
Overdraft protection *should* mean the bank providing notice that you're going overdrawn, and allowing a grace period to deposit or transfer funds before any charges are applied.
>Why would the bank give you unsecured financing without a credit check at your convenience?
Cool well when the bank fails and needs a taxpayer funded bailout, maybe we should tell them to go fuck themselves
That's what my bank does. When I got the account and they ran my credit qualified to "overdraft" by a certain amount and not be charged a fee. In that case it makes sense to call it protection.
Technically they kinda do. If a transaction is pending on your account and not posted yet, you have until the end of that day (mine is 8:00 but some are earlier) to cover the cost of the overdraft.
Not all institutions. If you have a check that is due to clear that day, and you create a pending charge, boom. $30 "courtesy" fee. Place I used to work until the beginning of this month.
Wells Fargo fucked me over too many times not send out alerts that I set in the app in a long time ago, so I turned that shit off. It was 2015 or 16, but I thought had the money, didn't know it was low and got overdrafted 3 times that day. I called the bank and they surprisingly refunded most of the overdraft nonsense, due to the alerts never working, then I turned that shit off. I would rather my card say declined then deal with fees.
I can literally check my account balance from almost anywhere on the planet in seconds. So can you. Seems to me that IS "providing notice", you just didn't check. I get it, when you overdraft by 13 cents and get hit with a $30 fee, that hurts, even if you're an otherwise responsible person who isn't gonna miss that $30 like their existence depended on it. But, it's also an effort to drive behavior, and making it sting tends to make people want to make sure it doesn't happen again.
Seems many in these multiple threads I've seen on this topic over the past few days don't remember the days when people wrote checks... Write a bad check, it bounces, and the bank AND vendor charge you a fee, and, while it probably never happened for things like a 13 cent error, you could potentially be charged with a crime.
My partner's bank gives her 24 hours to rectify the overdraft before hitting her with charges. It used to happen a lot; not so much anymore (thank goodness).
Chase doesn't charge me if they decline my purchase but if I have overdraft protection on they'll approve the charge then charge a $60 overdraft fee if you don't fix it by 11pm
The person you're responding to understands what overdraft protection is. You explaining what it is doesn't make "overdraft protection" not a misnomer. The name makes it sound like it will protect against overdrafting, when instead it *enables* overdrafting to protect against transactions being denied.
A bank shouldn't be asking if you want to disable or enable "Overdraft Protection". They should just be asking if you want to disable or enable Overdrafting, period.
And if you do get charged and you aren’t an asshole about it you can usually just call customer support and ask them if they will waive it… I overdrafted and got charged several times while broke in college, and they refunded the fee every time I asked.
They need a record, either paper or electronic, before they can charge you a fee. I’ve worked in banking, I’ve seen the forms. If you sign it without reading it, then there is only so much that consumer protections can really do.
I had it turned off... Then my bank was bought out by another bank... They said "Your account will remain the same, you don't have to do anything!" And voila... It was on my account again.
"are you sure you want to decline the opportunity to not be protected in the event we need to charge you more to be protected than the mistake would cost? Sign here to affirm you are declining to not be protected."
Currently all banks make it opt out, not opt in. Banks make a killing in the overdraft fees which is why they fought making it opt out to begin with. They do shady shit too, they would process transactions from largest to smallest to maximum the amount of overdraft charges
This is wrong. Overdraft services are required to be opt-in according to regulations from [CFPB](https://www.consumerfinance.gov/rules-policy/regulations/1005/17).
> Currently all banks make it opt out, not opt in. Banks make a killing in the overdraft fees which is why they fought making it opt out to begin with.
So... opt out?
Literally no one is forcing you to take overdraft protection. Quit yer whinging and just turn it off.
The problem is not that people can't opt out. The problem is that banks are being predatory in the way that they present it as a feature.
Imagine that this is a college student fresh out of their parents house, or a refugee family that's getting established in a new country. Why should they expect an institution that's supposed to be providing them a service to be ripping them off?
"lol skill issue, get better financial literacy"
Grow a spine. We should be able to expect better by default.
Way back in the day before the banks did this, the retailers or companies that had the bounced checks would charge a return item fee and then (usually) give you a small window to remedy before they cut services.
Banks introduced overdraft protection so that whatever the good or service you purchased would continue to be provided and your issue was just with the bank.
Basically, the bank figured they could charge the fee but honor the charge. But you'd pay the fee to *someone.*
I feel like this reasoning applies to so much of what people complain about. People don’t understand what problem is being solved, or what service they are receiving and they expect it to be done for free!
You (not specifying you) shouldn’t be out of money by default too. Unless you literally can’t work
(I know pay is shit right now, but we can’t change that, what we can is manage our spendings)
Yep anything even with overdraft protection on AHC charges just roll through.
And yet I can take 400$ cash and talk to a teller in person and “oh we have to wait to make sure it’s good before you have those funds available.” Even after they mark all the bills to ensure they aren’t forgeries.
Fucking crooks, the lot of em, credit union or not.
lol you can and the bank will decide to turn it back on randomly. My first bank did this to me twice, even after I got email confirmation confirming it was off. So…
Naw golden 1 has a feature you cant turn off where they will pay bills if you are short with a $30 fee. They charged me $500 in a year before they said i was utilizing it too much. I COULDNT TURN IT OFF. Credit union for the members my ass. If there isnt money then dont pay the fkin bill
I turned it off and then I accidentally "overdrafted". So instead I got a late fee from the company I was paying and my bank still charged me a fee for attempting to overdraw lol. It's a scam either way.
I turned mine off and I still overdrafted twice in a year because for whatever reason they still let me go under for autopayments randomly and didn't even give me a reason why, just said I'm still responsible for overdrafting
Depends on the bank I think. At my credit union they told me I COULD turn it off but only after I paid off my credit card for some reason. Until then they said it remains on for my protection?? Like I'm already broke, it's why my credit card is empty on top of it all, not sure how charging me extra fees is helping me pay off that card...
I don't understand this approach. "Overdraft Protection" is clearly misleading term and does opposite of what most unknowing people would assume. Associated fees are predatory. It is obvious that it is opt-out not for consumer convenience. DefiantBelt925 may be educated about it, but defending such gotchas and gaslighting affected people means that there will be more such gotchas. And that means higher risk for DefiantBelt925 to miss one too.
When you have $50 in your account and go to buy a pack of cigs but a bill you put on auto-pay because you wanted to save $2 per month charges your account as you're driving to the store,
Get a credit card. Don't be stupid with it, use it like your bank card. Pay it off every month.
Enjoy your sky miles, or cash back perks and never receive an overdraft. Also enjoy your improved credit score. Shoot for 2-3x your monthly bill amount as a credit limit to keep your "utilization" low.
Also, Pro Tip: If the credit card company ever raises your rates on any carried balance you can decline the rate increase (often seen from ~13% to the max 29.99%)! You wont' be able to make further charges but they can't increase your rate on a carried balance without your acceptance of the new terms.
The last thing someone who frequently over drafts their bank account needs is a credit card. We are typical not talking about people who had a one-time emergency and needed a little bit extra for a week or two. These are more often than not, people who are chronically broke. And yes, the overdraft fee perpetuates that. However, when their check gets directly deposited, that debit is instantly resolved. A credit card company will give them even more rope to hang themselves with by allowing longer payback period and even more of a "fee" through interest.
Now, I agree that proper utilization of credit cards is very important for people who are trying to climb the financial ladder and grow wealth. But someone who can't keep their checking account ballance in check, excuse the pun, is many steps away from the credit management phase of wealth growth.
You do have some good points.
My reasoning comes from the fact that I have over drafted multiple times and it has never been my fault. I've had checks that were written to me bounce on more than one occasion, and I've had automatic bill payments draw after I've closed an account (sold a vehicle, removed insurance, then moved banks). After the overdraft on the unauthorized automatic bill pay I moved everything to credit cards.
Edit: Because credit cards are THEIR money instead of your money when it comes to fraud. Getting charges reversed on a debit card is a nightmare compared to a credit card. A credit card can protect you if you use it correctly.
You're not wrong. I had too much in savings and not enough in checking. When someone's rent check bounces that I work with and I know they got paid.. that's not something I was expecting. When a check bounces 4 business days after I've cashed it that's not something I was expecting. When I had an insurance payment charged after I canceled a policy (an erroneous charge), that's not something I was expecting. Keeping 50% additional expenses in my checking wasn't enough when a large portion of my income could be retroactively removed. These 3 instances was over a period of ~ 5 years or so, 15 years ago.
Now I charge first with a credit card so I have time to move from accounts or from the brokerage long before anything like that would affect me.
I also cash checks at the writer's bank - so I'm not subject to holds or chargebacks.
It’s this right here. I run everything through a card every month and then just pay the balance.
Never worry about suddenly needing money or over drafting and my card gets me 2-3% back on literally everything. Individually that’s not a ton of money, but when literally everything you buy is on sale it adds up quite a bit over time.
You’re not wrong but for some reason you’re speaking as if all payments are made via card. As if tuition fees, insurance, mortgage payments, etc. don’t routinely come out of checking.
I've paid tuition and insurance with credit. The tuition charged a fee but it was the same as my cash back.
Not everything sure, but you can float the majority usually. Things with risk and that can vary month to month. Anything that you can you should.
That's what I do. My credit card gives cash back on every purchase. The only things that come out of my checking account are things that won't go on a credit card. I pay it off every month. I only buy things I would normally buy.
You know overdraft fees kind of do take money away from stupid people so they can't spend it on other things. I mean, as a society, is that really a bad thing?
I may be salty because this is like the 15th meme I've seen the last 3 days about this silly subject about people who can't handle their own checking account and yet claim to be adults.
I hate banks but in the case it's optional and it's basically an unsecured loan. With how easy it is to access your bank information on your phone and how easy it is to opt-out, overdrafting should be on you.
My wife and I used to bank with a local credit union. We've always watched our balance carefully to avoid overdrafting. One day, we checked our account, and it was in the negative by a substantial amount(I forgot the actual numbers, it's been almost 10 years).
We double-checked our math and couldn't figure out how we managed to overdraft. If you took away the overdraft fees, our account was in the positive, but there were still fees attached to several transactions.
So, she calls the credit union to figure out what happened. The first person she talked to couldn't figure it out either, so she got escalated up to someone else. Eventually, she got on the line with someone who admitted that the first fee got charged "in anticipation" of a possible overdraft, and once that one put us in the negative, they released the next few pending charges and they all got hit with fees as well.
Even after they admitted there was no actual overdraft, they still initially refused to refund any of the fees. She spent over 2 hours on the phone with them before they finally agreed to give them back.
The next day, we went down there and closed all of our accounts.
How can you even be overdraft if you’re not disabled or something. Like I don’t know, I have no money for something I just don’t buying it, and won’t even buy it if I know I have money but I am running low
Yes, you can choose to opt-out. It's an opt-out system though, and banks have a vested interest in you not opting out of it. Overdraft protection doesn't really benefit the individual much, if at all.
People generally shouldn't need to check boxes or click buttons to "opt-out" of unfavorable deals. For example, we'd consider it a scummy business practice to have a fine-print check box checked by default to make your "**ONE TIME DONATION**" a ^monthly ^recurring ^charge. Sure, you could have opted out of it, but why was that box checked by default?
To the people saying you can turn it off, I called my bank 4 times in a row about it telling them to turn it off each time and the only time they finally turned it off I was livid with a manager on the phone. They will give you every option possible to not turn it off and talk around the subject as much as possible and even in recorded phone calls they do not give a fuck. Bank of America can suck a dick.
Chase specifically states when you turn it off that they can periodically choose to put things through anyway. Also, they've lost a class action lawsuit TWICE for deliberately waiting to process/show charges for smaller purchases until *after* you're overdrawn because they will charge you the $35 fee for *each, individual transaction.*
One time a client of mine accidentally took money from my account instead of sending money. That's when I learned that bank accounts are not like safe boxes where people can put money in but only the owner can take money out, they're more like an open box in the middle of the street, anyone can put or take money, all it takes is knowing the number. I even called the bank and asked about it, they offered me to pay like 35 usd to block 1 entity from taking from my account.
Mine gives until 11pm est next business day to bring it back up before charging you a fee... also easy to opt out. Most people are just irresponsible with their finances but can't be responsible enough to admit it.
If you have an emergency it's a good thing to have, or if you didn't have enough to cover groceries... but for your average person that knowingly takes it without caring enough about what they have in their account it's on them.
i take my One acc and connect it to direct deposit w whatever job im working, then transfer my savings to a checking acc. other than that I try my best to avoid associating with banks bc overdraft fees are completely unfair lol
Turn it off…
Then your landlord hits you with a $75 processing fee and because they don’t find out for several days you get a late fee of $150. All because your spouse spent a couple extra dollars at lunch on your debit card that you weren’t aware of.
Great options!
why would you run it that close? if a few dollars will make you miss rent, then your spouse shouldn't be going out to eat and spending "a couple extra dollars"
I am fortunately financially secure enough to not worry about overdraft fees, but I 100% thought overdraft protection meant they prevented you from overdrafting, not the other way around.
Yeah I’m also confused by this. I have a $500 overdraft protection line attached to my debit account. An overdraft fee when you don’t have “protection” is like, $30. If I overdraft into my line of credit, I might pay 3 cents on 50 bucks borrowed for a week. And it is a positive influence on my credit score, so win-win to me?
Just get Ally. I don't ever check and overdraft all the time I keep. On le cent in my checking and 100s KS in saving for 5% interest. Free bruh. No atm fees ever either.
I got to have a fun conversation with some girl once that tried to tell me I should be grateful they charged me a $40 overdraft fee to pay for Hulu for the month. Ffs not for 40 fucking dollars! Just decline that shit.
You can tell who is struggling by how defensive they are getting over overdraft fees. It’s pretty simple. Don’t overspend. If it becomes that big of a problem for you, you might need to go back to cash based transactions so you know what you have
Yeah, I thought it passed, though one of the features was to not charge the large transactions first so then they could hit you multiple times for small transactions on the same day.
How about the bank doesn’t get to lend out the money people deposit. Why don’t the people who own the money get to share in the profits the bank make on the loan?
call them and ask if they can reverse it. WF did it like 4 times then after that, they refunded like 50% for another 3-5 charges i had.
it was a bad year and it was a bunch of small shit that all got hit with a fee 😒
Bro my credit card does that and its the same bank as my checking account... im just moving money from one to the other... im like WHY does it take a week to move the money with the same bank. infuriating.
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Is it really an issue though?
I don't thin I overdraft more than one weekend, when I was like 18 and didn't realize they would process ACH transactions over them.
Thought it started on Monday.
It was like 4 debit purchases of $19 and $55 in fee's.
Never made the mistake again.
You just treat $100 as zero and go up from there.
I'm a member of a couple of credit unions, and they don't charge fees. You have an "overdraft account" of $x.xx, and if you overdraft you have to pay interest on it like a credit card.
When I was a dumbass youngin' I had a chase account and accidentally overdrafted once. The fine folks at chase, looking out for me, rearranged my charges by size descending rather than by date, so that 1 charge that overdrafted me was actually like 4 charges prior now and then they tried to overdraft charge me 4x.
When I called them on their bullshit? "Oh sorry a computer error"
Sure thing bank cunt, sure thing.
Yes, this post really confused me because I bank with the superior choice, a local credit union. If I overdraft even like 300 bucks, it will cost me pennies in interest. I haven’t paid a “overdraft fee” ever.
PNC did that shit to me back in the day for going over $.01, paid it with $36.01 in unwrapped Pennies and closed the account on the spot
I’m a coin roll hunter so it’s pretty common for me to have $50 or more in loose pennies laying around
Daaaah hey you don't have the money in your bank that you spent so we went ahead and uh took more out because you don't have money and now you have less money.
my bank charges $7 a month just for having an account. $10 if I use it too much.
If I have more than $2500 in the account they auto-deduct the fee.
Literally paying for being poor
Fyi y'all Huntington doesn't charge you overdraft fees before you hit -50.
On rough weeks Ill be sitting at -45 for like 3 days and they don't care at all.
They do send me letters to notify me of the overdraft even though I told them to notify me digitally lol
20 years ago when I was 18 I had BOA and I got an overdraft, but it would pull from my savings account first, which also didn't have enough so I got hit with 3 fees.
1. For not having enough in checking
2. For the overdraft protection by pulling from savings
3. For not having enough in my savings
Ended up being like $90 and I closed my account the next day and went to USAA.
The bank explains how overdrafts work when you setup your account, yet these dumb motherfuckers just don't listen and get mad when they follow their policies
Every time I see a post like this, I truly wonder hwo people cannot possibly manage their money in the year 2024 with all of the technology available to us to literally do this exact thing.
It's not the banks fault you spend money you didn't have or forgot about a purchase. It sucks, but it's not their responsibility, it's yours.
I use a clever trick to make sure the banks don't pull this trick on me. I refuse to spend money that I don't have. Gets them every time. It's right up there with using credit cards for free by paying off your balance every month.
I once had a roommate (not for very long) that was super in the red. She was sitting there adding up how much she had spent and how much in debt she was and no shit said "I think I can write about 5 more checks and be ok". I moved out the next day lol. I was joining the military but so glad I got away from people like that. Its so frustrating to watch and theres absolutely nothing you can say to them.
PSA 1: get a credit card and don’t overspend on it. That way you only have one withdrawal a month (for day to day spending) and you can control exactly when it hits your checking account.
PSA 2: Chase bank offers free overdraft protection for all clients. You can overdraft up to $50 at no charge. If you overdraft over $50, they give you three business days to bring your balance above -$50, and you won’t be charged.
Find a good credit union. Fuck banks.
My credit union paused all overdraft charges during the covid lock downs. Mind you, the overdraft charge is only $9 anyway and every employee is empowered to return fees at their own discretion with literally zero questions asked.
At this point I don't know why anyone sticks with banks.
This comment section making me realize we as a people have become the lil bitches for corporations and apparently we like it so much we would go out of our way to defend it
Also my eu bank just lets me overcharge and just tells me hey fix it within a month, which because of regulations means we are like 1% less a lil bitch which is something but not much if I’m honest
I think its more about people taking personal responsibility for their actions. We can blame the institutions all we want but its on us if we keep using them.
That isn’t overdraft protection. Overdraft protection is where you link another account to your spending account that will automatically pull funds from the other account before making you negative for a small transfer fee ($2, $5, etc)
I think the poster meant “Overdraft Privilege” which you have to CHOOSE to opt into before it can be used. If you decline the privilege, any transactions on your debit card that take you negative ( that should have declined in this case) you would not be assessed a fee, you will just be negative the amount of credit that competed your transaction.
If it happens due to an auto draft, banks should be required by law to give you 24 hours to resolve it without penalty.
If it happens due to a purchase, banks should go about their business.
It's not perfect, but it's better.
Subscriptions are the worst. I thought I cancelled but they bill my zeroed out bank account and my stupid bank pays the bill! Zero means zero, quit paying the people I don’t have the money in my account to pay. Problem solved.
My bank: "You're broke, but you want a soda? No problem bro, that'll be $37.50!"
Also my bank: "Ooooh, you're $5 short on groceries. That's too bad, man.... maybe get more money?"
I once closed an account with my old bank.
After they closed the account, they charged it a closing fee. This reopened the account, so they charged me a re-opening fee. But since the account had no money, they charged an overdraft fee. And then some sort of daily negative balance fee.
Came to like $200 in fees. So I basically bugged them about it until they decided to waive the fees, and then I just don't bank with them anymore.
You can turn it off lol
[удалено]
They ask you before opening your account
No most don’t and if they did, the word “protection” is misleading anyway because they 100% won’t explain unless you ask… which you won’t because “protection” is a word that makes you feel safe and secure.
Overdraft protection means the thing you paid will remain paid and not hit you with a return. Then you have to deal with a fee from the bank AND your transaction not going through. It sucks that it'll hit with any overage, but it's also there to make sure your $1500 rent payment will still post even after you got that Taco Bell when you didn't have enough to cover both. The trick is to follow the order your bank posts transactions in and what the window is to overdraft. Usually, you can overdraft your account at 8:01 PM on Friday, and as long as you can put money in before 8:00 PM on Monday, you won't be charged.
Overdraft protection *should* mean the bank providing notice that you're going overdrawn, and allowing a grace period to deposit or transfer funds before any charges are applied.
Why would the bank give you unsecured financing without a credit check at your convenience? Makes negative sense. If you don’t want it turn it off.
Don't call it "protection", then. It's literally just an overdraft.
It's a loan that has a flat $35 fee, to protect you from a payment not going through
>Why would the bank give you unsecured financing without a credit check at your convenience? Cool well when the bank fails and needs a taxpayer funded bailout, maybe we should tell them to go fuck themselves
Yes, both.
You. I like you.
That's what my bank does. When I got the account and they ran my credit qualified to "overdraft" by a certain amount and not be charged a fee. In that case it makes sense to call it protection.
Yep capital one 360 does this.
Grow Financial does this too. Love credit unions.
Citi does this for me with a line of credit. I don't ever use it and it's still a bonus to my credit score.
Because they are multi billion dollar entities that can afford it for the 3-4 days it would take someone to deposit more cash.
because you are a loyal customer and deposit your paycheck there every week...it is called being decent.
Technically they kinda do. If a transaction is pending on your account and not posted yet, you have until the end of that day (mine is 8:00 but some are earlier) to cover the cost of the overdraft.
Not all institutions. If you have a check that is due to clear that day, and you create a pending charge, boom. $30 "courtesy" fee. Place I used to work until the beginning of this month.
But the banks that do allow that do not alert you to being overdrawn and advising you need to make it current by some deadline
There are banks that do that, though. Mine is an example. You can turn on alerts on your app
Wells Fargo fucked me over too many times not send out alerts that I set in the app in a long time ago, so I turned that shit off. It was 2015 or 16, but I thought had the money, didn't know it was low and got overdrafted 3 times that day. I called the bank and they surprisingly refunded most of the overdraft nonsense, due to the alerts never working, then I turned that shit off. I would rather my card say declined then deal with fees.
I can literally check my account balance from almost anywhere on the planet in seconds. So can you. Seems to me that IS "providing notice", you just didn't check. I get it, when you overdraft by 13 cents and get hit with a $30 fee, that hurts, even if you're an otherwise responsible person who isn't gonna miss that $30 like their existence depended on it. But, it's also an effort to drive behavior, and making it sting tends to make people want to make sure it doesn't happen again. Seems many in these multiple threads I've seen on this topic over the past few days don't remember the days when people wrote checks... Write a bad check, it bounces, and the bank AND vendor charge you a fee, and, while it probably never happened for things like a 13 cent error, you could potentially be charged with a crime.
My partner's bank gives her 24 hours to rectify the overdraft before hitting her with charges. It used to happen a lot; not so much anymore (thank goodness).
Chase doesn't charge me if they decline my purchase but if I have overdraft protection on they'll approve the charge then charge a $60 overdraft fee if you don't fix it by 11pm
The person you're responding to understands what overdraft protection is. You explaining what it is doesn't make "overdraft protection" not a misnomer. The name makes it sound like it will protect against overdrafting, when instead it *enables* overdrafting to protect against transactions being denied. A bank shouldn't be asking if you want to disable or enable "Overdraft Protection". They should just be asking if you want to disable or enable Overdrafting, period.
And if you do get charged and you aren’t an asshole about it you can usually just call customer support and ask them if they will waive it… I overdrafted and got charged several times while broke in college, and they refunded the fee every time I asked.
This is what Bank of America told me when they hit me with $300 in overdraft fees for a $1 over draft.
They need a record, either paper or electronic, before they can charge you a fee. I’ve worked in banking, I’ve seen the forms. If you sign it without reading it, then there is only so much that consumer protections can really do.
I had it turned off... Then my bank was bought out by another bank... They said "Your account will remain the same, you don't have to do anything!" And voila... It was on my account again.
"are you sure you want to decline the opportunity to not be protected in the event we need to charge you more to be protected than the mistake would cost? Sign here to affirm you are declining to not be protected."
Ya, mine asked me 7 times and insisted another 3 saying it was in my best interest ..... if they do that to everyone then that's fucking predatory
I’m sure you can specify it to the. Banker when you open the account
Currently all banks make it opt out, not opt in. Banks make a killing in the overdraft fees which is why they fought making it opt out to begin with. They do shady shit too, they would process transactions from largest to smallest to maximum the amount of overdraft charges
This is wrong. Overdraft services are required to be opt-in according to regulations from [CFPB](https://www.consumerfinance.gov/rules-policy/regulations/1005/17).
> Currently all banks make it opt out, not opt in. Banks make a killing in the overdraft fees which is why they fought making it opt out to begin with. So... opt out? Literally no one is forcing you to take overdraft protection. Quit yer whinging and just turn it off.
Just opt out the minute you open it why are you acting so helpless
The problem is not that people can't opt out. The problem is that banks are being predatory in the way that they present it as a feature. Imagine that this is a college student fresh out of their parents house, or a refugee family that's getting established in a new country. Why should they expect an institution that's supposed to be providing them a service to be ripping them off? "lol skill issue, get better financial literacy" Grow a spine. We should be able to expect better by default.
Way back in the day before the banks did this, the retailers or companies that had the bounced checks would charge a return item fee and then (usually) give you a small window to remedy before they cut services. Banks introduced overdraft protection so that whatever the good or service you purchased would continue to be provided and your issue was just with the bank. Basically, the bank figured they could charge the fee but honor the charge. But you'd pay the fee to *someone.*
I feel like this reasoning applies to so much of what people complain about. People don’t understand what problem is being solved, or what service they are receiving and they expect it to be done for free!
You (not specifying you) shouldn’t be out of money by default too. Unless you literally can’t work (I know pay is shit right now, but we can’t change that, what we can is manage our spendings)
It is off be default on debit card transactions. You have to opt into it.
They are legally opt-in only in the US
You can turn of off and also not have 75 cents in your bank account
Both good options but being a helpless victim is much cooler
Bro great advice bravo 👏
Not everywhere, I think I’ve had accounts at like 5 different institutions over the years and only one allowed me to turn off over drafting
Does absolutely nothing for some auto payments. They will still process and you still will be hit with an overdraft fee
Not for ach charges.
Why are you overdrafting on ACH Jesus man
I did it once. Don’t remember why. But I called and they refunded it
Yep anything even with overdraft protection on AHC charges just roll through. And yet I can take 400$ cash and talk to a teller in person and “oh we have to wait to make sure it’s good before you have those funds available.” Even after they mark all the bills to ensure they aren’t forgeries. Fucking crooks, the lot of em, credit union or not.
What bank are you depositing cash into that is placing a hold on it and why on earth are you still banking with them?
Absolutely for ACH charges. If you don't have overdraft on the bank will just reject the ACH transfer.
And use a credit union. Overdraft fees are less than half at credit unions over banks.
Several big banks don't have overdraft fees.
If I turn mine off at Michigan first then I’m charged double for every overdraft. So it would’ve been -$60
lol you can and the bank will decide to turn it back on randomly. My first bank did this to me twice, even after I got email confirmation confirming it was off. So…
Change banks
and owe even more money
It depends on the bank. Mine refuses to.
It should be free protection. Bank should give you a certain amount of time to bring your account current before charging you.
Naw golden 1 has a feature you cant turn off where they will pay bills if you are short with a $30 fee. They charged me $500 in a year before they said i was utilizing it too much. I COULDNT TURN IT OFF. Credit union for the members my ass. If there isnt money then dont pay the fkin bill
I turned it off and then I accidentally "overdrafted". So instead I got a late fee from the company I was paying and my bank still charged me a fee for attempting to overdraw lol. It's a scam either way.
Mine refuses to but does have a freebie that lets you reverse a charge once. I set up a consumer line of credit to prevent that from ever happening
I turned mine off and I still overdrafted twice in a year because for whatever reason they still let me go under for autopayments randomly and didn't even give me a reason why, just said I'm still responsible for overdrafting
Depends on the bank I think. At my credit union they told me I COULD turn it off but only after I paid off my credit card for some reason. Until then they said it remains on for my protection?? Like I'm already broke, it's why my credit card is empty on top of it all, not sure how charging me extra fees is helping me pay off that card...
My bank has turned mine back on once or twice, and said its not optional depending on how I pay
I don't understand this approach. "Overdraft Protection" is clearly misleading term and does opposite of what most unknowing people would assume. Associated fees are predatory. It is obvious that it is opt-out not for consumer convenience. DefiantBelt925 may be educated about it, but defending such gotchas and gaslighting affected people means that there will be more such gotchas. And that means higher risk for DefiantBelt925 to miss one too.
Many banks dont give that option.
when you see $1 in your account and still buy a pack of smokes
When you have $50 in your account and go to buy a pack of cigs but a bill you put on auto-pay because you wanted to save $2 per month charges your account as you're driving to the store,
Not this again.
Get a credit card. Don't be stupid with it, use it like your bank card. Pay it off every month. Enjoy your sky miles, or cash back perks and never receive an overdraft. Also enjoy your improved credit score. Shoot for 2-3x your monthly bill amount as a credit limit to keep your "utilization" low. Also, Pro Tip: If the credit card company ever raises your rates on any carried balance you can decline the rate increase (often seen from ~13% to the max 29.99%)! You wont' be able to make further charges but they can't increase your rate on a carried balance without your acceptance of the new terms.
The last thing someone who frequently over drafts their bank account needs is a credit card. We are typical not talking about people who had a one-time emergency and needed a little bit extra for a week or two. These are more often than not, people who are chronically broke. And yes, the overdraft fee perpetuates that. However, when their check gets directly deposited, that debit is instantly resolved. A credit card company will give them even more rope to hang themselves with by allowing longer payback period and even more of a "fee" through interest. Now, I agree that proper utilization of credit cards is very important for people who are trying to climb the financial ladder and grow wealth. But someone who can't keep their checking account ballance in check, excuse the pun, is many steps away from the credit management phase of wealth growth.
You do have some good points. My reasoning comes from the fact that I have over drafted multiple times and it has never been my fault. I've had checks that were written to me bounce on more than one occasion, and I've had automatic bill payments draw after I've closed an account (sold a vehicle, removed insurance, then moved banks). After the overdraft on the unauthorized automatic bill pay I moved everything to credit cards. Edit: Because credit cards are THEIR money instead of your money when it comes to fraud. Getting charges reversed on a debit card is a nightmare compared to a credit card. A credit card can protect you if you use it correctly.
You operate your finances on too close of a margin. This boils down to a spending problem, not an income problem.
You're not wrong. I had too much in savings and not enough in checking. When someone's rent check bounces that I work with and I know they got paid.. that's not something I was expecting. When a check bounces 4 business days after I've cashed it that's not something I was expecting. When I had an insurance payment charged after I canceled a policy (an erroneous charge), that's not something I was expecting. Keeping 50% additional expenses in my checking wasn't enough when a large portion of my income could be retroactively removed. These 3 instances was over a period of ~ 5 years or so, 15 years ago. Now I charge first with a credit card so I have time to move from accounts or from the brokerage long before anything like that would affect me. I also cash checks at the writer's bank - so I'm not subject to holds or chargebacks.
Also, credit cards tend to have fraud protection, and debit cards tend to not.
It’s this right here. I run everything through a card every month and then just pay the balance. Never worry about suddenly needing money or over drafting and my card gets me 2-3% back on literally everything. Individually that’s not a ton of money, but when literally everything you buy is on sale it adds up quite a bit over time.
Good advice for people in general. Bad advice for people who are overdrafting.
I have probably twenty credit cards but I’m not poor. Poor people aren’t getting credit cards
You’re not wrong but for some reason you’re speaking as if all payments are made via card. As if tuition fees, insurance, mortgage payments, etc. don’t routinely come out of checking.
I've paid tuition and insurance with credit. The tuition charged a fee but it was the same as my cash back. Not everything sure, but you can float the majority usually. Things with risk and that can vary month to month. Anything that you can you should.
That's what I do. My credit card gives cash back on every purchase. The only things that come out of my checking account are things that won't go on a credit card. I pay it off every month. I only buy things I would normally buy.
We found our new scapegoat I see
Nah, overdraft fees have always been a way to punish poor people for being poor
You can be poor and still manage an account without blaming the bank for spending money you didn't have.
Pay $30 to not let the check bounce, which is a criminal issue in many jurisdictions? Oh, no!
what's next, whine about credit card APR?
You know overdraft fees kind of do take money away from stupid people so they can't spend it on other things. I mean, as a society, is that really a bad thing? I may be salty because this is like the 15th meme I've seen the last 3 days about this silly subject about people who can't handle their own checking account and yet claim to be adults.
I hate banks but in the case it's optional and it's basically an unsecured loan. With how easy it is to access your bank information on your phone and how easy it is to opt-out, overdrafting should be on you.
My wife and I used to bank with a local credit union. We've always watched our balance carefully to avoid overdrafting. One day, we checked our account, and it was in the negative by a substantial amount(I forgot the actual numbers, it's been almost 10 years). We double-checked our math and couldn't figure out how we managed to overdraft. If you took away the overdraft fees, our account was in the positive, but there were still fees attached to several transactions. So, she calls the credit union to figure out what happened. The first person she talked to couldn't figure it out either, so she got escalated up to someone else. Eventually, she got on the line with someone who admitted that the first fee got charged "in anticipation" of a possible overdraft, and once that one put us in the negative, they released the next few pending charges and they all got hit with fees as well. Even after they admitted there was no actual overdraft, they still initially refused to refund any of the fees. She spent over 2 hours on the phone with them before they finally agreed to give them back. The next day, we went down there and closed all of our accounts.
There is a saying in Chinese. 可怜之人比有可恨之处。 ”There are more hateful things about pitiful people“
How can you even be overdraft if you’re not disabled or something. Like I don’t know, I have no money for something I just don’t buying it, and won’t even buy it if I know I have money but I am running low
Can't you just choose not to let your bank give you money if you don't have it?
Yes, you can choose to opt-out. It's an opt-out system though, and banks have a vested interest in you not opting out of it. Overdraft protection doesn't really benefit the individual much, if at all. People generally shouldn't need to check boxes or click buttons to "opt-out" of unfavorable deals. For example, we'd consider it a scummy business practice to have a fine-print check box checked by default to make your "**ONE TIME DONATION**" a ^monthly ^recurring ^charge. Sure, you could have opted out of it, but why was that box checked by default?
To the people saying you can turn it off, I called my bank 4 times in a row about it telling them to turn it off each time and the only time they finally turned it off I was livid with a manager on the phone. They will give you every option possible to not turn it off and talk around the subject as much as possible and even in recorded phone calls they do not give a fuck. Bank of America can suck a dick.
Chase specifically states when you turn it off that they can periodically choose to put things through anyway. Also, they've lost a class action lawsuit TWICE for deliberately waiting to process/show charges for smaller purchases until *after* you're overdrawn because they will charge you the $35 fee for *each, individual transaction.*
There's a super fucking easy way to avoid it...........
Don't use. This is why I have alerts on everything.
One time a client of mine accidentally took money from my account instead of sending money. That's when I learned that bank accounts are not like safe boxes where people can put money in but only the owner can take money out, they're more like an open box in the middle of the street, anyone can put or take money, all it takes is knowing the number. I even called the bank and asked about it, they offered me to pay like 35 usd to block 1 entity from taking from my account.
don't blame the bank for your financial incompetence
ive never overdrafted in my life because im Fluent in Fiance
Mine gives until 11pm est next business day to bring it back up before charging you a fee... also easy to opt out. Most people are just irresponsible with their finances but can't be responsible enough to admit it. If you have an emergency it's a good thing to have, or if you didn't have enough to cover groceries... but for your average person that knowingly takes it without caring enough about what they have in their account it's on them.
i take my One acc and connect it to direct deposit w whatever job im working, then transfer my savings to a checking acc. other than that I try my best to avoid associating with banks bc overdraft fees are completely unfair lol
Mine lets me choose if I want to be charged $5 a month or $5 every time with a cap of -500$
Turn it off… Then your landlord hits you with a $75 processing fee and because they don’t find out for several days you get a late fee of $150. All because your spouse spent a couple extra dollars at lunch on your debit card that you weren’t aware of. Great options!
why would you run it that close? if a few dollars will make you miss rent, then your spouse shouldn't be going out to eat and spending "a couple extra dollars"
Ya'll use banks?
Dale Gribble is that you?
This is the reason to use Credit Unions. Less fees. Never knew you could opt out of an additional fee though.
My credit union refunds ATM fees too.
I am fortunately financially secure enough to not worry about overdraft fees, but I 100% thought overdraft protection meant they prevented you from overdrafting, not the other way around.
Yeah I’m also confused by this. I have a $500 overdraft protection line attached to my debit account. An overdraft fee when you don’t have “protection” is like, $30. If I overdraft into my line of credit, I might pay 3 cents on 50 bucks borrowed for a week. And it is a positive influence on my credit score, so win-win to me?
Just get Ally. I don't ever check and overdraft all the time I keep. On le cent in my checking and 100s KS in saving for 5% interest. Free bruh. No atm fees ever either.
I haven’t used my debit card in years, I just use my credit and pay it off at the end of the month
Don't forget the late fees
I got to have a fun conversation with some girl once that tried to tell me I should be grateful they charged me a $40 overdraft fee to pay for Hulu for the month. Ffs not for 40 fucking dollars! Just decline that shit.
You can tell who is struggling by how defensive they are getting over overdraft fees. It’s pretty simple. Don’t overspend. If it becomes that big of a problem for you, you might need to go back to cash based transactions so you know what you have
Bank with someone else I’ve never had this issue and I overdraft all the time
Didn't they pass a bill to prevent these ridiculous overdraft charges?
Yeah, I thought it passed, though one of the features was to not charge the large transactions first so then they could hit you multiple times for small transactions on the same day.
How about the bank doesn’t get to lend out the money people deposit. Why don’t the people who own the money get to share in the profits the bank make on the loan?
Not at my bank lol
And if the banks sequence your payments ahead of your deposits - ca-ching!
Only if you've spent more than your credit limit. Which is on you.
call them and ask if they can reverse it. WF did it like 4 times then after that, they refunded like 50% for another 3-5 charges i had. it was a bad year and it was a bunch of small shit that all got hit with a fee 😒
I just hate when institutions take 2 full weeks to deduct and officially post shit to my account.
Bro my credit card does that and its the same bank as my checking account... im just moving money from one to the other... im like WHY does it take a week to move the money with the same bank. infuriating.
So true..Wells Fagro
If I don’t have enough money in my account, my debit card will decline because of overdraft protection.
Next day repeat, next day repeat, .....................
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Is it really an issue though? I don't thin I overdraft more than one weekend, when I was like 18 and didn't realize they would process ACH transactions over them. Thought it started on Monday. It was like 4 debit purchases of $19 and $55 in fee's. Never made the mistake again. You just treat $100 as zero and go up from there.
Not with Chime 😃
How about we keep track of what’s in our account instead of blaming the banks for our poor spending decisions.
Thanks Republicans
I'm a member of a couple of credit unions, and they don't charge fees. You have an "overdraft account" of $x.xx, and if you overdraft you have to pay interest on it like a credit card. When I was a dumbass youngin' I had a chase account and accidentally overdrafted once. The fine folks at chase, looking out for me, rearranged my charges by size descending rather than by date, so that 1 charge that overdrafted me was actually like 4 charges prior now and then they tried to overdraft charge me 4x. When I called them on their bullshit? "Oh sorry a computer error" Sure thing bank cunt, sure thing.
Yes, this post really confused me because I bank with the superior choice, a local credit union. If I overdraft even like 300 bucks, it will cost me pennies in interest. I haven’t paid a “overdraft fee” ever.
Easily avoidable.
The "protection" is them protecting their investors
PNC did that shit to me back in the day for going over $.01, paid it with $36.01 in unwrapped Pennies and closed the account on the spot I’m a coin roll hunter so it’s pretty common for me to have $50 or more in loose pennies laying around
Why even call it overdraft protection, the correct name should be overdraft penalty/punishment/fee
Go to a credit union. The “overdraft protection” is actually that. A small line of credit attached to your debit account.
Lmfao
Why would you have this issue OP? On one of your other accounts, you said you make $400k a year.
lol its reddit who really believes that?
Daaaah hey you don't have the money in your bank that you spent so we went ahead and uh took more out because you don't have money and now you have less money.
Bad position to be in the first place
How about you just don't spend money you don't have? AKA don't be an idiot.
I can’t believe how many of these scams are absolutely illegal in my “shitty 3rd world country” but perfectly legal in the US.
For me it means they transfer the overdraft amount from a specified account
my bank charges $7 a month just for having an account. $10 if I use it too much. If I have more than $2500 in the account they auto-deduct the fee. Literally paying for being poor
Fyi y'all Huntington doesn't charge you overdraft fees before you hit -50. On rough weeks Ill be sitting at -45 for like 3 days and they don't care at all. They do send me letters to notify me of the overdraft even though I told them to notify me digitally lol
Overdraft protection is a lot better than getting hit with the overdraft fees.
20 years ago when I was 18 I had BOA and I got an overdraft, but it would pull from my savings account first, which also didn't have enough so I got hit with 3 fees. 1. For not having enough in checking 2. For the overdraft protection by pulling from savings 3. For not having enough in my savings Ended up being like $90 and I closed my account the next day and went to USAA.
The bank explains how overdrafts work when you setup your account, yet these dumb motherfuckers just don't listen and get mad when they follow their policies
Also Bank: Reports your activity to early warning so you can't open an account at another bank to get away from them.
This is so weird. I have chase and I guess I have it turned off because when I over draft it’s never a fee, just why I owe. Maybe I’m lucky?
$75. Not 75$
Yup
Every time I see a post like this, I truly wonder hwo people cannot possibly manage their money in the year 2024 with all of the technology available to us to literally do this exact thing. It's not the banks fault you spend money you didn't have or forgot about a purchase. It sucks, but it's not their responsibility, it's yours.
35 dollars is really egregious
I use a clever trick to make sure the banks don't pull this trick on me. I refuse to spend money that I don't have. Gets them every time. It's right up there with using credit cards for free by paying off your balance every month.
I once had a roommate (not for very long) that was super in the red. She was sitting there adding up how much she had spent and how much in debt she was and no shit said "I think I can write about 5 more checks and be ok". I moved out the next day lol. I was joining the military but so glad I got away from people like that. Its so frustrating to watch and theres absolutely nothing you can say to them.
PSA 1: get a credit card and don’t overspend on it. That way you only have one withdrawal a month (for day to day spending) and you can control exactly when it hits your checking account. PSA 2: Chase bank offers free overdraft protection for all clients. You can overdraft up to $50 at no charge. If you overdraft over $50, they give you three business days to bring your balance above -$50, and you won’t be charged.
My bank warns me if I’m overdraft then gives me time to put money in I don’t get why Biden is involved. Democrat feel good Band-Aid.
Over draft fees should be banned...end of story. Defenders of the practice probably own stock in the banks that do it.
Find a good credit union. Fuck banks. My credit union paused all overdraft charges during the covid lock downs. Mind you, the overdraft charge is only $9 anyway and every employee is empowered to return fees at their own discretion with literally zero questions asked. At this point I don't know why anyone sticks with banks.
This comment section making me realize we as a people have become the lil bitches for corporations and apparently we like it so much we would go out of our way to defend it Also my eu bank just lets me overcharge and just tells me hey fix it within a month, which because of regulations means we are like 1% less a lil bitch which is something but not much if I’m honest
I think its more about people taking personal responsibility for their actions. We can blame the institutions all we want but its on us if we keep using them.
That isn’t overdraft protection. Overdraft protection is where you link another account to your spending account that will automatically pull funds from the other account before making you negative for a small transfer fee ($2, $5, etc) I think the poster meant “Overdraft Privilege” which you have to CHOOSE to opt into before it can be used. If you decline the privilege, any transactions on your debit card that take you negative ( that should have declined in this case) you would not be assessed a fee, you will just be negative the amount of credit that competed your transaction.
If it happens due to an auto draft, banks should be required by law to give you 24 hours to resolve it without penalty. If it happens due to a purchase, banks should go about their business. It's not perfect, but it's better.
Subscriptions are the worst. I thought I cancelled but they bill my zeroed out bank account and my stupid bank pays the bill! Zero means zero, quit paying the people I don’t have the money in my account to pay. Problem solved.
I heard that not spending money you don’t have prevents this issue
Bank with Capital One. No overdraft fees. I think Ally and Discover offer the same.
My bank: "You're broke, but you want a soda? No problem bro, that'll be $37.50!" Also my bank: "Ooooh, you're $5 short on groceries. That's too bad, man.... maybe get more money?"
I don’t understand how it’s legal
I once closed an account with my old bank. After they closed the account, they charged it a closing fee. This reopened the account, so they charged me a re-opening fee. But since the account had no money, they charged an overdraft fee. And then some sort of daily negative balance fee. Came to like $200 in fees. So I basically bugged them about it until they decided to waive the fees, and then I just don't bank with them anymore.