- Oct 30, 2000
- 42,589
- 5
- 0
Like what? I left $500 in a checking account and I didn't write any checks.
It's my money right or does it belong to the bank as they claimed for inactivity?
My credit union only charges $25 for an overdraft fee. Here is one that got me one time: I had around $80 in my checking account and bought gas at the pump knowing that I was only going to put about $30 in the tank. What I did not know is that the pump was going to authorize my card for $75, so I was later told. Another charge came thru for a bit over $26 and my bank, at the time (BOFA), charged me an overdraft fee on the $75 authorization that was placed on the account. Once everything washed out and my balance was positive, they still refused to refund the fee, citing that it was my responsibility to know whether I had enough money to cover my authorizations. Bullshit! How was I to know they would authorize $75?
From that point on, I go to the cashier and put a set amount of fuel on my debit card.
From that point on, I go to the cashier and put a set amount of fuel on my debit card.
What fine print legally allows the bank to steal $500 just because I left it untouched?
I'm sure they no longer do this shit and use other nefarious fees to steal now.
Clearly it is your fault for not being able to read the programming of that computer in your head and ahead of time like the rest of the geniuses on here can.
C'mon - if *ANYBODY* on these fora knows about "nefarious" uses for computers, it'd be Dave, eh?
I picture you spending hours poring over EULAs, Bank agreements, and various other contracts you receive in the mail and online. They should make one of those Budweiser "real men of genius" songs about you.
"Today we salute you, Mr. I read every word of fine print presented to me twice-over guy."
So you're for eliminating personal responsibility? You'd like to see your mortgage payment bounce instead of some minor debit? If someone is so irresponsible that he/she can't figure out how not to overdraw the account, he/she can set up an overdraft protection plan with the bank.
According to your "timestamp" argument, which of these transactions should be paid first? Last?
1. ATM withdrawal at 8:30 AM.
2. Debit card charge at 4:30 PM. The actual sale occurred at 12:00 PM, but the store's machine was down and didn't report the transaction until 4:30 PM.
3. Debit card charge at 8:00 PM.
4. ACH withdrawal for mortgage during overnight processing - a monthly transaction that was set up three years ago.
5. A child support check written 7 days ago which was deposited two days ago at a different bank and finally showed up at your bank today.
This is an oversimplified example, but I think you get the idea. The bank has no idea which of these payments is most important to you, so it just sorts by dollar amount, and assumes the largest payments are the most important. Even if a bank tried to do a "timestamp" order, that would be impossible for overnight transactions (ACH & checks).
In response to other posters, as far as deposits being posted first - I think they should be. At my bank, that's what we did. If your bank doesn't, I'd drop them like a bad habit.
I really cant believe people on here dont get it LOL Im up to page 2 and even posted on page 1.
No one is arguing that it is not their responsibility for overdrafts. They are arguing that the banks are scheming the system to maximize their profits (fees). If i overdraft myself its my responsibilty. Everyone here agrees on that. But the banks are withdrawing money in a manor that they see fit. Not the manor i saw fit when i made my responsible charges. As in the artcile.
"$1,000 in your account.
You write checks for $20, $50, $100, $1,000 and all are presented on the same business day.
How many checks will hit you with an overdraft fee?
THREE - every time. The bank will re-order the transactions so that the $1,000 check is processed first, guaranteeing that the $20, $50 and $100 checks overdraw, thereby generating three overdraft charges. If they processed the transactions "largest item LAST" you'd generate one overdraft fee - on the $1,000 check."
That is called scumbag banking techniques. It has nothing to do with peoples personal responsibilities. You guys argue over the stupidiest shit and point fingers at all the wrong people. Its hilarious actually.
No one is arguing that it is not their responsibility for overdrafts. They are arguing that the banks are scheming the system to maximize their profits (fees). If i overdraft myself its my responsibilty. Everyone here agrees on that. But the banks are withdrawing money in a manor that they see fit. Not the manor i saw fit when i made my responsible charges. As in the artcile.
"$1,000 in your account.
You write checks for $20, $50, $100, $1,000 and all are presented on the same business day.
How many checks will hit you with an overdraft fee?
THREE - every time. The bank will re-order the transactions so that the $1,000 check is processed first, guaranteeing that the $20, $50 and $100 checks overdraw, thereby generating three overdraft charges. If they processed the transactions "largest item LAST" you'd generate one overdraft fee - on the $1,000 check."
That is called scumbag banking techniques. It has nothing to do with peoples personal responsibilities. You guys argue over the stupidiest shit and point fingers at all the wrong people. Its hilarious actually.
So if the bank actually pays the overdraft, you're getting an unsecured loan. You expect to get that for free?
IndyColtsFan
Lifer
- Sep 22, 2007
- 33,655
- 688
- 126
Oh? Where in the article does it state Dave's contention, which is that banks are secretly (and illegally, judging from his "nefarious" comment) removing money from your account to force an overdraft?
If you're referring to the sorting practice, I agree it is shady but this is not what he was referring to in his post and is not currently illegal to my knowledge. I also agree with Genx that the reason the banks push the debit card so much is because it is easier to cash in on these overdrafts.
Fingolfin269
Lifer
- Feb 28, 2003
- 17,948
- 34
- 91
At what point did I ever throw personal responsibility out of the conversation? Never. Read the thread. I just took issue with you using the word 'bounce' because technically none of this stuff is bouncing. The bank is covering it but they are doing it in an extremely shady way (via ordering of transactions in the way that most benefits their bottom line).
dualsmp
Golden Member
- Aug 16, 2003
- 1,627
- 45
- 91
Didn't take long for this to turn into total shit.
Anyways, here is my 2 cents - at the stage we are, banks will fight to keep overdraft if the article is indeed true. 38 bil is a lot of money, its money that no one wants to give up.
Now the compromise option would be you swipe your debit card, and then you find out you have insufficient funds. You can choose to process and take the OD hit, or you can decline it. For some people, the need the complete a certain transaction is absolutely necessary and they are willing to pay the OD fee even though they mis calculated their funds. For others, the OD Fee isn't worth whatever they want to buy.
The only are where I would support legislation is processing these transactions in a FIFO manner. If you have 1k in the account, and process 10,90,1k check....that is how they should process it. It should NOT be taken and switched around. That is lying about the order of a transaction.
On the same note, I think if you make a late transaction at night, and only put in enough money the next day, you SHOULD be hit with an OD fee. Staying consistent needs to work both way. And in cases like these, one needs to use a CREDIT CARD....
I would hope that even those that don't want to pass legislation forcing banks to not allow overdraft (IMO --> personal responsibility comes first) can agree on this point. Do not lie about when the customer preforms a transaction, and process it as such. This isn't the days where you send in checks and a check that you later wrote, depending on the post office route it took and the location you sent it to, may arrive first.
Never had OD fee, used my debit card maybe thrice in my life.
Anyways, here is my 2 cents - at the stage we are, banks will fight to keep overdraft if the article is indeed true. 38 bil is a lot of money, its money that no one wants to give up.
Now the compromise option would be you swipe your debit card, and then you find out you have insufficient funds. You can choose to process and take the OD hit, or you can decline it. For some people, the need the complete a certain transaction is absolutely necessary and they are willing to pay the OD fee even though they mis calculated their funds. For others, the OD Fee isn't worth whatever they want to buy.
The only are where I would support legislation is processing these transactions in a FIFO manner. If you have 1k in the account, and process 10,90,1k check....that is how they should process it. It should NOT be taken and switched around. That is lying about the order of a transaction.
On the same note, I think if you make a late transaction at night, and only put in enough money the next day, you SHOULD be hit with an OD fee. Staying consistent needs to work both way. And in cases like these, one needs to use a CREDIT CARD....
I would hope that even those that don't want to pass legislation forcing banks to not allow overdraft (IMO --> personal responsibility comes first) can agree on this point. Do not lie about when the customer preforms a transaction, and process it as such. This isn't the days where you send in checks and a check that you later wrote, depending on the post office route it took and the location you sent it to, may arrive first.
Never had OD fee, used my debit card maybe thrice in my life.
Pens1566
Lifer
- Oct 11, 2005
- 14,024
- 11,736
- 136
Banks do some sketchy things. Period. I had a DD a few weeks ago (that has been from the same source every 2 weeks for years) that miraculously started showing up as a wire transfer complete with matching wire transfer fee .... until I noticed it and called to inquire. "Huh, you're right. Don't know why that was happening. (wink wink)"
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