Bank Fees

[zoraster]

that's why I only spend doubloons. I like to know how much I have just by how much I'm being weighed down.

[Katsuki]

Dubloons are the best. If only our flimsy paper bills had the same weight to them.

[Annadog40]

Could change dollars to pennies since they weigh more.

[eagerSnake]

I do like to pull out cash for spending too as it keeps my accounts from having multiple transactions - but then I have to keep all my receipts, which I hate.

[Ranmaru]

I fucking hate bank fees and recurring charges I HATE EM GRR

[Kmd4390]

There is an account with $200.00 and the account opt-in to overdraft coverage.

The account takes transactions of $60.00, 50.00, 35.00, 30.00, 20.00, and 5.00. It has the available funds to cover these transactions at the time of authorization. Consider these six transactions pending. Therefore the available balance is $0.00, and the posted balance is still $200.00.

The account makes another transaction of $1.00. This $1.00 transaction overdrafts the account by $1.00. This transaction is also pending. The available balance is now $-1.00, yet the posted balance still $200.00.

The $60.00, 50.00, 35.00, 30.00, 20.00, and 5.00 transactions post. This occurrence puts the posted balance at $0.00, with an available balance of $-1.00. Since the available balance is negative at the time the transactions post, the account will be charged fees for all of these transactions. These fees will equal $216.00. This occurrence will put the account at -$217.00.

The $1.00 transaction posts. The bank will also assess another $36.00 fee for this transaction. This occurrence will put the account at -$253.00.

Total fees: $252.00 for a $1.00 overdraw.

This case is not even a worst case.

Is this right?

Is this ethical?

What would be a better policy?

Banks are also unable to refund more than one fee due to federal regulations unless due to documented merchant error.

Sounds like you need a new bank. Mine would only charge $10 in this situation (overdraft for the $1 transaction). It would be $0 if I got money in the account before the transactions posted.

unless you're married why do you have multiple checking accounts?

It's not really that uncommon. I opened a new account when I worked 3 hours from home because the bank I use at home is local and didn't have branches near where I worked. Also had to open a checking account with the bank that my mortgage was through.

[Lycanfire]

i have $300 overdraft $5/day, can be negotiated to $4 but i rolled my eyes at the clerk and told her that it was not worth the words from my mouth.

[shaft.ed]

Yay I got a call from a collections agency yesterday. Apparently I owe AOL $100 although I've never had an AOL account
I'm sure this won't end up being a massive time sink

[eagerSnake]

If it's not on your credit report and you don't recognize the debt tell'em to bugger off.

[zoraster]

Tell them you only want to communicate with them through written means and not to contact you again.

Then get a free credit report to see if there's anything on it. You get one a year, if I recall.

[PeregrineV]

There is an account with $200.00 and the account opt-in to overdraft coverage.

The account takes transactions of $60.00, 50.00, 35.00, 30.00, 20.00, and 5.00. It has the available funds to cover these transactions at the time of authorization. Consider these six transactions pending. Therefore the available balance is $0.00, and the posted balance is still $200.00.

The account makes another transaction of $1.00. This $1.00 transaction overdrafts the account by $1.00. This transaction is also pending. The available balance is now $-1.00, yet the posted balance still $200.00.

The $60.00, 50.00, 35.00, 30.00, 20.00, and 5.00 transactions post. This occurrence puts the posted balance at $0.00, with an available balance of $-1.00. Since the available balance is negative at the time the transactions post, the account will be charged fees for all of these transactions. These fees will equal $216.00. This occurrence will put the account at -$217.00.

The $1.00 transaction posts. The bank will also assess another $36.00 fee for this transaction. This occurrence will put the account at -$253.00.

Total fees: $252.00 for a $1.00 overdraw.

This case is not even a worst case.

Is this right?

Is this ethical?

What would be a better policy?

Banks are also unable to refund more than one fee due to federal regulations unless due to documented merchant error.

Your math is accurate.

The best bet is for you, the banks loyal customer, to call and politely ask to have the charges removed, as they were due to a rare circumstance outside of your control, and not normally how you operate.

Chances are that they would rather your goodwill and continued business (and future money) then fuss over a few hundred bucks.

Ethical? That's a tough one....

[PeregrineV]

can you get an overdraft facility? They're a lifesaver

I'm sure they probably could but that is beside the point here.

What would be a more fair policy as far as overdraft fees for both the consumer and the bank?

I think they should not be able to charge a fee on a transaction if you had the balance available to cover the transaction at the time of authorization. In this scenario, only the 1.00 charge would've been assessed a fee of $36.00.

Pedit: The only saving grace is the fact that they are not allowed to charge more than six fees per day. If more than six "over drafted" transactions post on a given day (quotations because I don't believe it's overdraft if you had the balance at the time of authorization), you will still only be charged six fees. Hence why my example stops at six transactions.

Good banks will not allow transactions over your "Available balance", thus avoiding all the fees (but you can't buy that $1 item).

[eagerSnake]

Good banks

This pings me as an oxymoron.

/cynicism

[Katsuki]

Oh I forgot to mention that in general if you talk to your banker and it was an honest mistake, they're likely to waive the fee for you.

[PeregrineV]

Good banks

This pings me as an oxymoron.

/cynicism

Meh. I actually prefer credit unions, but they are usually smaller and stricter.

[inte]

Some people on this site I swear

calm down sweet tits im busting your balls you seem like you have your shit together

[eagerSnake]

Ha I didn't note the sarcasm until afterwards m8