Why Are Overdraft Fees Legal?

[w¡n9Nµ7 §£@¥€r 123]

It is because Ovomit and the Democrat Congress do not have the balls to take on their lobbyist friends of the Finance industry and they want their campaign contributions that is why! It is white collar crime what has been going on and has been allowed by banks to do for the past 9 years in the USA! And they are a major reason we had this major recession with their reckless lending practices on mortgages from 2001-2007! FACT! :angry: :angry:

Past 9 years of Ovomit and the Democrat Congress?

I must have been in a coma.

[rsn 135]

I was actually surprised there are so many banking fees in this country.

In the UK you don't have to pay for checkbooks, and you aren't billed for having a low account balance.

We used to have those ATM fees for using a different banks ATM, but those were made illegal under European Law (there was a Trade and Industry study that found that it cost banks virtually nothing if you withdrew at another ATM) as the charges were unjustifiable.

Not all banks charge these fees. In fact, my bank fives me a free checkbook, charges no ATM fees, and refunds any ATM fees charged by any ATM I use. There are good banks, and bad banks.

[zqt3344 21]

WE need more banks, that is a great thing, more competition and better service and deals for consumers, the problem has been that banks were de-regulated back in mid to late 90s and allowed to buy up one another and choke out any competition, which is the same damn thing that happened with major oil and gas companies in the USA that refined and sold gas we went from 12-15 down to like 5-7 now! And poof, sky high gas prices and now you have about 5 major banks and poof, sky high banking fees and credit card rates and fees and credit line limit games. Anytime there is no competition you and I the consumer is going to suffer big time! And if left unregulated and un enforced like banks have been for past 9 years, well you see how well they regulate themselves for the good of all, THEY DO NOT! :angry: :angry: :angry: :angry: :angry:

True, true. Why are there so many freakin' banks?

[SMR 368]

Or you could just keep better records of what is in your account so you don't over-spend, or have over-draft protection linked to your savings account.

Actually, they typically charge an overdraft fee, even if it is linked to your savings account. That is, they aren't actually giving you a loan, they are just transferring from savings to checking. But since you didn't tell them to, they charge you money. It's pretty ridiculous.

I was actually surprised there are so many banking fees in this country.

In the UK you don't have to pay for checkbooks, and you aren't billed for having a low account balance.

We used to have those ATM fees for using a different banks ATM, but those were made illegal under European Law (there was a Trade and Industry study that found that it cost banks virtually nothing if you withdrew at another ATM) as the charges were unjustifiable.

Not all banks charge these fees. In fact, my bank fives me a free checkbook, charges no ATM fees, and refunds any ATM fees charged by any ATM I use. There are good banks, and bad banks.

What bank are you using? Seriously, I am looking for a bank, and would like a good one. Or is it a local bank.

[w¡n9Nµ7 §£@¥€r 123]

:angry::angry::angry::angry::angry::angry:

[zqt3344 21]

Truthfully it got ramped up and started under Bill Clinton and Barney Frank and Republican Congress and just passed along under Bush, fact. Congress, and that is both republican and democrat are to blame for this mess, BUT Ovomit did not have the guts or the will to push through major sweeping overhaul change this past spring like he promised, FACT, he wimped out and everyone in finance knows it! Open your eyes and awake from your Obot trance! :angry: :angry:

It is because Ovomit and the Democrat Congress do not have the balls to take on their lobbyist friends of the Finance industry and they want their campaign contributions that is why! It is white collar crime what has been going on and has been allowed by banks to do for the past 9 years in the USA! And they are a major reason we had this major recession with their reckless lending practices on mortgages from 2001-2007! FACT! :angry: :angry:

Past 9 years of Ovomit and the Democrat Congress?

I must have been in a coma.

[Joseph & Ana 0]

Personally I think the law is moot. You already have the priviledge of requesting that overdrafts not be allowed. I did it at my credit union and at my bank. I can no longer overdraft, so there is no fee.

So whats the point of wasting money on another bill?

[w¡n9Nµ7 §£@¥€r 123]

... the problem has been that banks were de-regulated back in mid to late 90s ...

Ovomit deregulated them when he was President in the 90s? What a #######! :angry::angry::angry::angry::angry:

[zqt3344 21]

You are truly uninformed when it comes to money and finance and it shows. Later idiot.

... the problem has been that banks were de-regulated back in mid to late 90s ...

Ovomit deregulated them when he was President in the 90s? What a #######! :angry::angry::angry::angry::angry:

[rsn 135]

Or you could just keep better records of what is in your account so you don't over-spend, or have over-draft protection linked to your savings account.

Actually, they typically charge an overdraft fee, even if it is linked to your savings account. That is, they aren't actually giving you a loan, they are just transferring from savings to checking. But since you didn't tell them to, they charge you money. It's pretty ridiculous.

I was actually surprised there are so many banking fees in this country.

In the UK you don't have to pay for checkbooks, and you aren't billed for having a low account balance.

We used to have those ATM fees for using a different banks ATM, but those were made illegal under European Law (there was a Trade and Industry study that found that it cost banks virtually nothing if you withdrew at another ATM) as the charges were unjustifiable.

Not all banks charge these fees. In fact, my bank gives me a free checkbook, charges no ATM fees, and refunds any ATM fees charged by any ATM I use. There are good banks, and bad banks.

What bank are you using? Seriously, I am looking for a bank, and would like a good one. Or is it a local bank.

For checking, I use a Fidelity "mySmart" cash account. It's an online bank (unless you live near one of their locations - there aren't many). They provide you will postage paid envelopes for depositing checks as well (as many as you need). Plus I get interest on the cash in my checking account (although it's only about .20% right now - it was more a couple years ago). I was a little bit worried about moving from a local bank to an online one a few years ago, but it was the best move I ever made. 0 complaints about Fidelity; the local banks I used before them sucked. BTW, I also use Fidelity for savings & 401k, so I have access to all my money on one website.

Edited September 24, 2009 by rsn

[w¡n9Nµ7 §£@¥€r 123]

You are truly uninformed when it comes to money and finance and it shows. Later idiot.

... the problem has been that banks were de-regulated back in mid to late 90s ...

Ovomit deregulated them when he was President in the 90s? What a #######! :angry::angry::angry::angry::angry:

[Dave-n-Oksana 49]

The Finance Lobby

— By Kevin Drum

If you use your debit card and overdraw your account, your bank will hit you with an overdraft fee. If you make five purchases of ten dollars each on the same day, you'll get five more overdraft fees. And just to make sure you get hit with as many fees as possible, your bank will make sure to debit your biggest transaction of the day first — even if it was actually the last one you made that day. That way your account goes to zero faster and every subsequent debit triggers another fee. Ka-ching! That's all bad enough, but there's one more thing: you have no choice in the matter:

Sen. Christopher J. Dodd (D-Conn.) plans to introduce legislation requiring banks to get permission from customers, rather than allowing overdrafts automatically. If customers decline and then try to overspend, the transaction would be rejected. A similar bill is pending in the House.

Dodd dismissed concerns about the impact on ailing banks. "People out there are getting whacked," he said. "They should have the right to say, 'Deny me the transaction.' "

Well, good for Chris Dodd. I hope his legislation passes. But seriously, ask yourself this: what does it say about the power of the finance lobby in America that this was ever legal in the first place? I mean, it's not even a close call. It's just flatly outrageous. It's outrageous that banks should be allowed to charge fees that amount to 1000% interest rates on a short-term loan; it's outrageous that they should be allowed to reorder your debits to make you pay more of these fees than you should; it's outrageous that they should be allowed to charge multiple fees per day in the first place, since they're essentially just making a single loan; and it's outrageous that they should be able to do this whether you want them to or not.

Let's say that again: They can force you to accept a loan at 1000% interest whether you want it or not. And no one before now has been able to stop them.

Think about that the next you see one of those happy happy happy Visa debit card commercials where they're exhorting you to just swipe that card for every purchase you make without giving it a second thought. There's a reason for that. And there's a reason they can get away with it.

http://www.motherjones.com/kevin-drum/2009/09/finance-lobby

This is one of the biggest rackets out there. First the banks hit you with the overdraft fee, then there is the daily fee you acquire until you take care of the overdraft. And if you think Overdraft protection will protect you, think again as they still will assess the fees.

I'm in the wrong frickin business.

[Heracles 417]

Where is Matt to tell us how awesome not being regulated is? The guy seems to ignore all of these examples. In Europe these things are heavily regulated, hence, why people are much less likely to be ripped off.

Same with mobile fees and charges, like paying for incoming calls and incoming sms; which is an absolute joke and rip-off. A $99.95 plan in Aus means I pay $99.95 period. Here you need to add on 13 different convenient fees to everything. Someone like Matt needs to live overseas for a while so he actually see the benefit of regulation and the protection of consumers.

Edited September 24, 2009 by Booyah!

[Joseph & Ana 0]

Where is Matt to tell us how awesome not being regulated is? The guy seems to ignore all of these examples. In Europe these things are heavily regulated, hence, why people are much less likely to be ripped off.

Same with mobile fees and charges, like paying for incoming calls and incoming sms; which is an absolute joke and rip-off. A $99.95 plan in Aus means I pay $99.95 period. Here you need to add on 13 different convenient fees to everything. Someone like Matt needs to live overseas for a while so he actually see the benefit of regulation and the protection of consumers.

I see. So paying more is only a good thing if you're paying the IRS. I get you.

[The_Dude 1,142]

I think the proposed bill is a good idea. However, I do not have a problem with overdraft fees. You shouldn't spend money that you don't have, period. The fees are exhorbitant as a punitive measure. What I object to regarding banks is their procedures that they do in order to create overdrafts, like having a policy that they take debit/check withdrawals before a deposit. So, If you used your debit card on the day of your paycheck and did not have enough money in the bank prior making the debit charge, you'll receive overdraft fees.