Why Are Overdraft Fees Legal?

[joelunchbox 0]

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

CRIKEY!!! Obama has been president for nine years already!!!!!

[Trumplestiltskin 5,791]

Not only a fact - a "factyfacty" fact

[one...two...tree 2,762]

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

CRIKEY!!! Obama has been president for nine years already!!!!!

You've just become ZQT's best friend.

[The_Dude 1,142]

It only feels like 9 years for some

[Peikko 1,575]

I can't get a credit card unless I pay for one and that's never happening!

Beyond that the people who are caught out by this type of things are the people who are just scraping by paycheck to paycheck. If you can afford to have a healthy balance in your bank account, it's just not going to happen to you.

That said, if you do go over a few dollars you can ring your bank and have these kinds of fees waived, they will do it if you are generally a responsible customer.

[Nik+Heather 122]

I think the larger problem is with credit cards and lending practices - that whole industry is designed to keep people in debt.

No, what keeps people in debt is their mistaken assumption that they are entitled to live beyond their means. That it is their right to buy things which they cannot afford.

Credit cards are a tool - and just like any other tool, they can be used productively or destructively.

[The_Dude 1,142]

I can't get a credit card unless I pay for one and that's never happening!

Beyond that the people who are caught out by this type of things are the people who are just scraping by paycheck to paycheck. If you can afford to have a healthy balance in your bank account, it's just not going to happen to you.

That said, if you do go over a few dollars you can ring your bank and have these kinds of fees waived, they will do it if you are generally a responsible customer.

You don't need to have a healthy balance to be responsible and not spend more than you have. You are right though that most banks will waive the fees if it is not a regular occurence. If you have Wells Fargo, you may need to be more of a pri!ck about it to get the desired result.

[Peikko 1,575]

When you live pay check to pay check it can be a real balancing act between incoming and outgoings - I don't think it's totally fair to say such people are 'irresponsible'.

[scandal 951]

I think it is a huge rip-off that credit card companies are allowed to charge 30% interest. Maybe the preamble needs to be changed from we the people to we the politicians and friends

I AGREE, it is highway robbery! Criminal. And also the reason I NEVER use credit cards, except to rent a car or reseve a hotel room, and even then I pay in cash or by debit card when I turn the car in or check out. A charge never gets applied to my credit card.

ONLY YOU can prevent such travesties. Legislators cannot do it for you.

Gary - you state that you feel that charging 30% interest is "Criminal" , and "Highway robbery" (In fact - it's not - it's perfectly legal, provided it's disclosed to the consumer).

You also state "Legilslators cannot do it [prevent] for you".

You are aware, are you not, that the word "criminal" implies by definition that the action has been described as such in a criminal code by either state or federal authorities.

Which means legislators have taken their best whack at saying what is or isn't kosher with regard to the practice in question.

You really can't have it both ways. If you consider the actions of private institutions (such as banks) to be potentially criminal, you are inviting in the legislators of the land to step in and pass laws making those actions crimes.

I agree with you regarding people needing to take personal responsibility. No one forces them to bank with a given institution, or to use a debit card, or to overdraw their accounts. I've never payed an overdraft charge, so as far as I'm concerned they can zoom to the moon and it won't personally affect me.

On the other hand, I do believe that predatory business practices can and should be curtailed by legislative authority. We all share a common society - businesses and consumers. We all benefit from it, we all have responsibilities to it. Landlords are required to keep properties safe for their tenants and are liable if they fail to do so. Airlines are required to perform safety inspections on their aircraft to protect the flying public and are liable if they fail to do so.

Stock exchanges that preferentially show orders to "inside" customers (recall the Nasdaq Flash order mini-scandal a few weeks ago) should be prevented from doing so, and should be required to make trading a level playing field. It's a basic fairness argument.

Similarly, in my view banks that distort their customer's normal usage of their banking products in order to gain excessive profits should be prohibited from doing so. It's a basic fairness argument.

[Trumplestiltskin 5,791]

I think the larger problem is with credit cards and lending practices - that whole industry is designed to keep people in debt.

No, what keeps people in debt is their mistaken assumption that they are entitled to live beyond their means. That it is their right to buy things which they cannot afford.

Credit cards are a tool - and just like any other tool, they can be used productively or destructively.

Of course, which is why at some points questions should be asked about why these institutions continue to extend the credit limits of people who continue to pay the monthly minimum.

Isnt that at least a big part of the reason why the housing market collapsed? Sure people took out dodgy variable rate mortgages for more than they could afford on their income, but surely some responsibilty must be placed on the institutions who approved these lines of credit.

[Peikko 1,575]

The implication of irresponsibility is that they are buying luxury items on tick instead of watching their red line - I am pointing out that for a lot of people, just living from one month to the next can fall into this trap.

[one...two...tree 2,762]

When you live pay check to pay check it can be a real balancing act between incoming and outgoings - I don't think it's totally fair to say such people are 'irresponsible'.

Are you kidding? The only reason why they are scraping by is because they are lazy slobs with no sense of responsibility. Now hand me that sponge cake, dear.

[Peikko 1,575]

[Trumplestiltskin 5,791]

The implication of irresponsibility is that they are buying luxury items on tick instead of watching their red line - I am pointing out that for a lot of people, just living from one month to the next can fall into this trap.

Well yes, that it is certainly true too.

[Amby 490]

what percentage of americans actually use their credit cards how they're meant to?