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rockdawg21
11-13-2009, 04:22 PM
Thank GOD this is finally going into effect! Overdraft fees are such BS!

The drawback is we have to wait until July for this to happen.

http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1381789&_blg=1,1381789

Banks need customer consent for overdrafts

Starting in July, debit and ATM charges that overdraw accounts will be denied.

Posted by Ryan MacClanathan on Thursday, November 12, 2009 4:10 PM

In a win for consumers, banks will have to secure customers' consent before charging exorbitant overdraft fees on ATM and debit card transactions, The Associated Press reports.

In other words: No more $35 charges against customers who accidentally overdraw their accounts for a $4 latte.

The new Federal Reserve rules announced today require banks to notify customers of their overdraft services and give customers the option of being covered. If customers don't "opt in," any debit or ATM transactions that overdraw their accounts will be denied.

The changes take effect July 1. Overdrafts fees for checks and electronic payments are not prohibited by the new rules. Details can be found here.

Fed officials say banks earn as much as $25 billion to $38 billion annually from overdraft fees, the AP reported. That total includes check overdrafts.

"The final overdraft rules represent an important step forward in consumer protection," said Federal Reserve Chairman Ben Bernanke. "New and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service."

Spiritwalker
11-13-2009, 04:28 PM
Thank GOD this is finally going into effect! Overdraft fees are such BS!

The drawback is we have to wait until July for this to happen.

http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1381789&_blg=1,1381789



I guess I am a lucky one.. I over drew my account once about 13 years ago.. It blew so bad then, I have never come close. I watch my accounts like a hawk.

rockdawg21
11-13-2009, 04:40 PM
I guess I am a lucky one.. I over drew my account once about 13 years ago.. It blew so bad then, I have never come close. I watch my accounts like a hawk.
I do too. I check it every day because I don't balance my checkbook. The thing that I hate the most is my wife had 2 that came through the other day and she ended up over -112. The thing that's such BS is she and I share a joint savings account which more than enough to cover it, but our bank doesn't offer the auto-transfer. It's crap and now we have a law that's going to protect us from these BS fees.

Buzzard
11-13-2009, 06:28 PM
I do too. I check it every day because I don't balance my checkbook. The thing that I hate the most is my wife had 2 that came through the other day and she ended up over -112. The thing that's such BS is she and I share a joint savings account which more than enough to cover it, but our bank doesn't offer the auto-transfer. It's crap and now we have a law that's going to protect us from these BS fees.

Why should the bank have to cover consumer errors and do extra work to transfer funds when it is the account owners responsibility to keep tabs of their own finances?

I don't balance my checkbook either but I have never once had any overdraft charges on my account. The fees kept me on my toes.

I agree though that the banks should have to ask first or just deny the charges. You'll have a lot of pissed off latte drinkers if they get denied.

rockdawg21
11-13-2009, 06:49 PM
Why should the bank have to cover consumer errors and do extra work to transfer funds when it is the account owners responsibility to keep tabs of their own finances?

I don't balance my checkbook either but I have never once had any overdraft charges on my account. The fees kept me on my toes.

I agree though that the banks should have to ask first or just deny the charges. You'll have a lot of pissed off latte drinkers if they get denied.
I agree, the responsibility is on the consumer, but at the same time, the funds are available in the account linked to the person's social security number. It's not difficult, just simple computer programming. Banks were refusing to do that in order to make extra money. It's crap.

Spiritwalker
11-13-2009, 07:45 PM
Why should the bank have to cover consumer errors and do extra work to transfer funds when it is the account owners responsibility to keep tabs of their own finances?

I don't balance my checkbook either but I have never once had any overdraft charges on my account. The fees kept me on my toes.

I agree though that the banks should have to ask first or just deny the charges. You'll have a lot of pissed off latte drinkers if they get denied.



I agree that banks shouldn't have to just "give in" and not charge the customer.. but when the charge is 5x (in some cases bigger) than the actual overage.. that's nutty..

I would like to see overdraft fees based on a percentage of the charge..

but that would never happen.

rockdawg21
11-13-2009, 07:54 PM
I agree that banks shouldn't have to just "give in" and not charge the customer.. but when the charge is 5x (in some cases bigger) than the actual overage.. that's nutty..

I would like to see overdraft fees based on a percentage of the charge..

but that would never happen.
That's a good point too. Sometimes, you get only $2 under and they charge you $35, which is just crazy.

Plus, the way they handle it, is so they can get more money.

If you have $50 in your account, and you have 2 bills come through, 1 which is $25 and 1 which is worth $75. They will FIRST charge the $75 so you get into the hole for -$25, they will then charge you the OD fee, then they will pay the other $25 and charge you for a 2nd overdraft fee.

If they would pay the $25 first, you would still have $25 in your account, then they would pay the $75 leaving you with -$50, then charge only 1 overdraft fee, but this is not how they handle it.

The above practice is absolutely horrible! It doesn't matter if the $25 charge came before the $75 charge, they charge the highest one first then charge the smaller one next.

J.B.
11-13-2009, 08:16 PM
Banks are a joke.

With all the hidden fees and other crap, they are set up to squeeze every last dime out of you.

They could honestly care less about you unless you are rich.

County Mike
11-14-2009, 02:56 AM
This is a great step forward. A few years ago my business was struggling and I was playing close to the line. Some unexpected fee (like the banks monthly fee of $27 for not having at least $2000 balance the entire month) would take me below zero. Then they would hammer me for $35 on every subsequent charge. That would result in additional unexpected expenses. I had money coming in and going out every day, set up several days or weeks in advance. The cycle would continue with additional withdraws coming in and the deposits not covering them BECAUSE of the overdraft fees. It just snowballed from there and became almost impossible to get back to a positive balance.

I hate banks. I finally cancelled my account just so they couldn't keep charging me any more fees. Sucked it up with the companies that I "bounced" checks too and eventually got caught back up. It was a financial nightmare.

J.B.
11-14-2009, 03:04 AM
Then they would hammer me for $35 on every subsequent charge.

That's what they did to me before too. It's absolutely ridiculous.

There was a mistake that caused me to overdraw and they tried charging me a 35 dollar fee for every pending transaction on my account. I went in an complained and they removed all but one.

Josh
11-14-2009, 04:46 AM
I have bought a couple of 37$ cokes.

NateR
11-14-2009, 05:11 AM
I've had problems with overdraft on my bank account before, which is why I always have them turn it off completely. I'm more careful with my money when I have no safety net.

However, that still doesn't mean I don't get hit with the occasional overdraft fee because of ridiculous bank policies. I had an account with a bank in New Mexico for over 4 years, but decided to close it when I moved to Illinois. I withdrew most of the money I could out of it, but left a few dollars in there to cover the monthly fees for a few months, but didn't get the account closed in time. So, they charge me a monthly fee that put me in the negatives, then they charged me an overdraft fee for the monthly fee, then an account inactivity fee, since I hadn't used the account for almost a year, then another overdraft fee for the inactivity fee.

I ended up calling them and complaining enough that I only had to pay $34 to shut the account down. They were trying to charge me over $70 in fees when I didn't have a single bounced check or overdraft on my account for the entire time I lived in New Mexico. Needless to say, I will never open an account at a First National Bank again.

MattHughesRocks
11-14-2009, 05:20 AM
I've had my same Bank Of America checking and sometimes even a savings account (:laugh:) for at least 15 years now and never had a problem. You guys are just mean to banks :tongue0011:

Tyburn
11-15-2009, 08:48 PM
Thank GOD this is finally going into effect! Overdraft fees are such BS!

The drawback is we have to wait until July for this to happen.

http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1381789&_blg=1,1381789

our ATM machines will never let you go overdrawn if you dont have an overdraft. BUT the banks love overdrafts because they charge for them.

I have an aggreed overdraft of more then 2K Stirling, It took me the best part of three years to work it off, I'm only 88 pounds overdrawn because I had to pay a little extra from the States Trip...so by Christmas, I'll be back permanently above the Red.

Meanwhile I pay for the privalage :angry:

Rev
11-15-2009, 09:51 PM
I have to agree with buzzard on this one. I feel like your account is your responsibility but it would be great if they could work something out for case by case situations.