Joe King
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Because there a lot of bankers......
Yes i said bankers not w******....... |
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gimp3836@sbcglobal.net
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Golferwhoknows has it about 99% right. There is a second issue that needs to be addressed.
When ever the automated process breaks down, i.e. an overdraft or anything else along those lines, a human being must become involved. That means it is costing the bank that amount of time for a person to perform a hand procedure when the bank had budgeted for an automated process.
By the way, I am not a banker, I am retired from the military and high tech jobs. So as my Dad would say, "I don't have a dog in this fight". |
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fran t
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Whom is going to stop them. Governmental officials debate the problem, and debate it and debate it. Our answer is to re-elect the governmental officials, thus banks charge extortionate rates because we keep re- electing the same governmental officials so they can keep on debating the problem. |
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golferwhoworks
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because they can! |
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kindi78
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Any money that is held up in your account is actually invested by them in other things. If you take out more than you owe, that hurts the banks. Sadly, there are some people that overdraw a whole lot, so to balance it out, even the people that only overdraw by $1 need to pay that huge fee. Plus, it's just nice for the banks to get an extra outlet of revenue. So many people overdraw, I don't even want to know how much they earn from that every day. Personally, I have always believed that you should have to pay a percentage of how much you overdraw rather than a flat fee. People that overdraw by $1000 or more should definitely have to pay more than us poor folks that overdraw a couple of bucks here or there. Don't you think? |
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rachaelbrook@btinternet.com
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Because they are bank robbers just legal ones |
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bwadsp
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They just want your money |
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Oh Boy!
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I used to work in a bank. Most banks would be happy if no one was ever overdrawn. The consider what they do like a fine. They're trying to get people to stop that behavior. In our experience, the amount of work required was huge compared to the revenue generated by overdraft charges. |
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ES
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its how they make their money |
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Sparky
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1) Profit. They have to give free banking in the UK to remain competitive, and that means they need to recoup their costs. People do not realise it costs banks lots of money to run all the accounts.
2) Deterrant. Makes you think twice before you go overdrawn.
3) Who said you could take money that isn't your's in the first place? Why do people take money that isn't theirs without permission? You take the money so you pay for the Bank to employ people to manage your account. |
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Franco
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Dealing with overdrawn accounts costs money to the banks, but not nearly as much as the charges they impose. This is because every year the bank directors have to show higher and higher profits, otherwise their share price will fall and they will get lower bonuses, would have to face displeased share holders etc.So they have to think of ever new ways to increase their profits.
They cannot take money from clients with big balances as they can easily go to another bank, while the poor clients with overdrawn accounts have no option.
As it says in the Good Book, to those that have it shall be given. |
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selfmanagement808
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The way I see it is that it is a penalty to prevent you from doing it again. Just the fact that you asked the question shows that the fee has got your attention. Imagine if you were to overdraw you account 5 times a month! |
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Jonathan S
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If you're in the UK you can claim all your bank charges back - see www.bankactiongroup.co.uk.
I just got 600 quid back from the Halifax!!! |
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