Overdraft fees are out of control, steamed consumers tell Fed

Discussion in 'Economics' started by ASusilovic, Mar 25, 2009.

  1. Even as Washington pumps billions of taxpayer dollars into financial institutions, steamed consumers are telling regulators to control overdraft fees that banks charge customers.
    More than 1,600 public comments about proposed rules for overdraft services have been posted to the Federal Reserve's Web site. The open comment period on the Fed's overdraft proposals ends March 30. To submit a public comment, fill out a form on the Fed's Web site.
    Some frequent complaints on the Fed's site are about unexpected overdraft fees, exorbitant overdraft fee rates and the reordering of debits to increase fees. Thomas Madrid, Tucson, Ariz., commented on the Fed's Web site that he has been "raked over the coals" the few times that he has overdrafted.


    That works in order to "recapitalize" banks...:D :D :D
  2. so you can pay $25 for bouncing the check, or $35 becasue they covered it for you. So, the $10 is what's outrageous? not sure I'm getting it...

    From the article:
    "Rosanne Bono of Tryon, N.C., said banks were "adding more insult to injury" after she lost her job last year.
    "In my struggle to cover my bills every month (which is a losing battle), the occasional overdraft fees have severely cut into my meager unemployment income. For instance, I have been charged $35 each for $2.50 and $5 overdraft amounts! This is consumer rape!" she wrote."

    If she's not working you'd think she'd have plenty of time to balance her checkbook.

    I remember when I was hunting around for bank accounts years ago, one of the "features" I could get was overdaft protection. I think I either had to pay a fee for that or accept a slightly lower interest rate or someting. But the bank would cover up to a certain amount for a certain # of times per month. I don't have a lot of sympathy for these people who are pissing and moaning so much. Either pay for the protection or don't overdraw...
  3. Get out of banks and join a credit union. They are easier on the nerves. A neighbor went through bankruptcy. All her cards were canceled. Secured credit card companies (including banks) are very predatory on the "victim"/customer regarding fees/etc.. Although her credit union did cancel her regular credit card, she got a secured Visa card through them, and they were very easy on her. Just keep the money in the bank and pay your bill monthly. No other nasty surprises.

    Again, get out of banks and join a credit union. They don't aggresively treat their customers like a cow to be milked.