Overdraft Bank Fees May Be Getting More Expensive
People are becoming more and more familiar with overdraft bank fees. Overdraft fees typically come from companies that provide financial services to consumers in the form of checking accounts and debit cards. Overdraft fees for various services can range from $.20 to $.40 a day, and many people simply don’t have the money to pay them. Debit cards can be a safety net, allowing an extra $.20 to $.40 a day in overdraft fees. Unfortunately, that comes at a time when consumers need that extra bit of cash – and maybe more than one or two or three or four or more – amounting to tens of dollars over the course of a three-or-four-day average. 개인회생 절차
Now, some banks are unearthing an important part of their overdraft protection policy.
When checking account customers overdraw their accounts due to insufficient funds, some banks do prevent them from making charges from a debit card if the account is overdrawn. However, some banks now use a more deceptive technique, charging customers $.10 a day for every charge that overdraws the account. In addition to the overdraft fee, the bank will assess a whopping four- and five-dollar fee on every bounced check, uncildoitated check, or other insufficient payment made. In other words, the bank’s fees amount to a net of 20 percent of every overdraft amount. That’s a hefty chunk for overdrafts that you might just avoid by keeping your checking account in balance. It’s especially painful for customers with small negative balances – and sometimes not even for customers with large negative balances. Because the fees are “authorized,” even if you don’t have enough funds in your account, the bank can use discretion to charge whatever fees it wishes.
The banks are not out to increase your spending. In fact, the finance charges effectively fund bad spending. It makes sense, really. Those $.10 a day fees, for example, go to WHO reuniteDEBTORone of those who are in the worst financial shape. Thus, the money is fattening the bank’s bottom line at your expense of yours. The more overdraft fees that banks can generate, the more they can pay to star executives on their $50 million bonuses.
This will probably not go away anytime soon. The banks won’t look kindly on the negative impact the fees have on their bottom line because quarterly, as in three or four quarters, that overdraft fee is the single biggest earner for the national banks. And when U.S. citizens face up to these fees, few things ay more important than the bank fees that can eat away at their wallets and their peace of mind.
The Federal Reserve Board, of itself, was forced to find ways to counter the practice of overdraft fees after complaints from consumers. In 2005, it introduced the Truth in Lending Act (TILA) and the Bank Fees Security Act ( Erina). Both of these require disclosure of overdraft fees and have loopholes that allow consumers to circumvent bank fees – for example, by using ATM’s that don’t accept debit cards, which are operated by the bank Circular Censure (CC). The banks try to implement these regulations in their institutions, but consumers are fighting back.
In March 2006, the D.C. Circuit Court called the reckless overdraft fee practices of 14 of the 20 banks subject to the CC. The stars of the banking industry are attacking these banks, claiming that rules can’t be applied consistently across entire industries. They won in the case, but will banks fight back?
At this time, it is too late to stop the unfair fees. Most intelligent consumers want to take the offered free checking account plunge as price tag these fees but just don’t have the means. The easiest option is to write them a check. Generate transaction fees from other fees not directly related to your checking account. An account- perk reward cardis another way to combat overdraft fees. Report bank fees of $100 to $200 per item by emailing them and providing a tracking number.
