Are you my lobster?
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they make some money, its like bounced check fees.... ive only had one... they suck. |
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efb91
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They relize that they can do it and you can't do anything about it. (They're jerks.)
If you want, Webster Bank offers Totally Free Checking, in which you will be only charged $5 if you overdraft. |
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krystalk25
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they do that so you don't do it. If you see they charge an arm and a leg to overdraft and then they keep charging you, it deters some people to not do that. That's why
. |
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hi_punkin
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How do you think banks make...bank? hahaha...sorry
Anyway, the bank does this because for everytime you have an overdraft they have to pay for you. So they are covering for you really. |
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chris f
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because then can!!!! :(
that doesn't mean it's right! : ) |
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me
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Wish mine were $25. I think mine runs around $32. But they do it to make even more money, they don't have enough as it is you know. |
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ed
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Because they can.
Ever hear of the Little Train That Could?
Our imbecilic congresses of the past decades did away with the "Usury Law". You may not remember that. Max interest was 18%.
NOW, another imbecilic congress is considering placing a limit on interest that banks can charge.
AAARRRRRRGGGGHHH!!!!
#^%&*((&)#W%*_)_&@!#$*()
Off with their heads!
OOPS! That was in France and England. Sorry. |
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linz_b
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all banks have overdraft fees. you're lucky you only have to pay $25. my bank charges $35. keep track of your balance! |
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Steve L
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may be, but if you are going to spend money you don't have in the account... |
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trdconsult
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It certainly is painful, I'll grant that.
Overdraft fees are charged for a couple of reasons - remember, these are the bank's reasons, not yours. You are playing in their sandbox so they get to make the rules.
1. Serve as a detriment - if you don't want to pay an OD fee, you shouldn't overdraft your account.
2. Protection for the bank - banks have to maintain a minimum ratio of loans to balances, when you overdraw you put that ratio in jeopardy. Your couple of checks wouldn't do it by themselves, but if they were joined by a bunch of others (including some big ones) the bank could potentially face fines for not maintaining that minimum ratio.
3. Because you said that you would. Check your disclosures - you agreed to pay that fee when you got your account. You gave your word, you signed the contract.
But go in and talk to a banker at your bank - NICELY - and ask if they can help you out. Most bankers will try to help if the person on the other side of the desk is nice and polite.
edit: Wow - I just saw all of the bad advice you're getting. First off - the banks aren't the bad guys - if someone were to borrow (without your permission) a bunch of money from you, wouldn't you expect something in return? They aren't doing anything different that what most of us would do in the same situation.
Second - it is not a scam. It is a perfectly legitimate way to attack a very difficult problem. If there weren't any penalty for overdrawing, how many people do you think would go ahead and overdraw their accounts? Most people who have overdraft protection in the form of a loan have them maxed out, and then end up overdrawing their accounts anyway.
Your bank will have a written policy of how they pay checks. Most banks pay checks from highest to lowest. The reasoning it that the larger the check is, the more important it is. Think about it - what are the largest checks that you write each month - mortgage/rent, car payment? What would happen if those got rejected? Yes, it could result in more overdraft fees, but at least you still have your home and car. If a bank paid the checks from lowest to highest, your grocery check would be paid, so would your gym membership - but your credit would start getting screwed because your larger checks usually are credit related.
To the guy who says that it is a "scam" - he needs to get rid of his sense of entitlement and "man up" to the responsibilities of a normal adult. |
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kwflamingo
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Because there is a lot of extra paperwork involved, and someone needs to pay for the time needed,AND you should know better than to overdraw your account! |
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mugfullo2
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It is a complete scam, I used to work at Wacovia. They will also order your fines in such a way as to charge you as many overdrafts as possible. So, say you have 100.00 in your account in the morning. If you spent $1.00 at 6:00am, $5.00 at 12:00pm, and $100.00 at 6pm, they will debit the $100.00 (to put your account in the negative), then the $5.00, then the $1.00. That way they can charge you three overdraft fees instead of one.
Today, Big banks (like Bank of America and Wacovia) make up to 70% of their profits on fees. Join a credit union, you will not have this problem.
EDIT: in response to trdconsult's comment on "man"ing up (eyes roll) it IS a scam how they ORDER fines, and banks cannot defend it. Sure there could be a penalty, but they manipulate their control of your money so as to create more fines. They constatnly use fine print and loop holes to charge you more. This is a fact. I recommend a Credit Union, because they are not trying to make as much of a profit. trdconsult works at a bank, don't listen to him. |
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