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Debit cards fuel overdraft outrages »
Posted by: Karina 2 years, 9 months agoMany people don't realize that a carefree swipe of their debit card at a point-of-sale terminal to buy a Big Mac could result in "courtesy overdraft" fee of $30 or more. But such fees are becoming increasingly common. When faced with a transaction that would send a consumers' account into negative territory, banks now regularly approve such transactions, cover the expense, and charge hefty fees.
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Karina
Karina Longworth blogs about film at Spout.com. She co-founded the film blog Cinematical in March 2005, whilst simultaneously completing an MA in Cinema Studies ...
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Comments: 30
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JeffL
Jan. 30, 2007, 10:25 a.m.My fridge went out last year, and I was buying ice for the cooler. Little did I know that I was overdrafting the account with every bag I bought. Because I bought the bags separately, I was charged $30 for every $.99 bag of ice. I don't mind an overage fee since it was my own stupidity, but I think a new fee for every charge is a little excessive.
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TechnologyExpert
Jan. 30, 2007, 1:20 p.m.Hmmm ... I use credit cards for everything (because of the rebates I get -- 5% groceries / gas, 1% everything else) ... but I pay them off every month, too.
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1voice
Jan. 30, 2007, 2:28 p.m.I have been using my debit card for about 2 years now and I love it. I make sure I have at least $500 extra in it at all times, above and beyond what I plan to spend. You have to be aware of your finances and be a responsible buyer. A friend of mine knew she did not have enough money and intentionally used her card!!! I dont feel sorry for people like that. If you don't have it, how can you spend it????
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joe-schmo
Jan. 30, 2007, 3:50 p.m.Since it is the persons fault who uses it I don't understand why it is only a $30 charge for that .99 cent overage. If I had my way it would be more like a $672 charge. That way we could REALY get the economy going. After all, if the banks and credit card companies do well then that is good for all of us. I say, the best thing for the consumer in the long run is to screw him as much as possible that way the consumer will benifit from the prosperity that the companies will contribute to society.
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Flashygrrl
Jan. 30, 2007, 3:59 p.m.National City and 5th-3rd are the worst abusers of this. My fiance lost a ton of money like this last year. Try using a credit union, they generally aren't as guilty of this, and when it does happen, I for one have at the most had $10 taken as "payment"
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Formidable
Jan. 30, 2007, 5:53 p.m.Citibank rechartered itself as a South Dakota bank in 1981 to take advantage of a new law that set South Dakota's maximum permissible interest rate on loans to 25%, then the highest in the nation (New York had refused to raise its interest rate even after prolonged lobbying). However, South Dakota's dreams of becoming a major financial center were dashed when Delaware matched its move the next year, and banks in search of the right to charge high interest rates flocked to Delaware instead. So it goes. Bank fees and interest rate schedules as well as loan terms are approved by legislators. Do you think there was a lobbiest involved?
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Disulfate
Jan. 30, 2007, 6:17 p.m.A person would have to be pretty dumb not knowing how much
is in their checking account. Either that or simply not
caring.
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Bruedaddy
Jan. 30, 2007, 6:59 p.m.never had a chack take forever to clear huh?
I had an electric bill all of a sudden show up a month after I wrote it. even after recutting another check to cover the payment.
the drones at the electric co. just sent it on through.
now should that cost me 30 GD dollars? Hell no.
some of you folks are just harsh and rigid.
GEEZ!
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getreal1
Jan. 31, 2007, 7:10 a.m.Every check ever written should be collected on with in 10 days of being issued. It is unfair that a lawyer and corporations can put mandates like these on their checks and the average person cannot.
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evelyna
Jan. 31, 2007, 9:18 a.m.My bank is Citizen's Bank. They advertise "They are not like other banks."
I tried to obtain overdraft protection and they turned me down because I declared bankruptcy 8 years ago. I have a ton of credit cards now-my credit was in pretty good standing at the time.
They turned me down because of the bankruptcy.
That sounds like every other bank to me. They do not want to lend money unless it is 0 risk to them.
When banks and businesses are robbing the consumer-how good is this booming economy they are talking about?
Sounds like they are ripping people off and not making a lot of money from their investments.
The bank turned me down because they were hoping I would default.
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joe-schmo
Feb. 1, 2007, 1:06 p.m.I just looked into a loan shark and he is willing to give loans for 23% per year. If you're credit cards are screwing you these guys might be a good alternative...just make shure you pay up.
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robbed
June 13, 2007, 7:27 p.m.The banks have set up their debit policies so they can steal the most money they can get from those of us that make mistakes with their accounts. They say they debit largest to smallest to benefit the public but, you can bet its only because it nets the bank millions. I have had them charge me fees when they haven't yet paid the money to the merchant. Suntrust bank says you have authorized them to pay the merchant so those funds are no longer available. My point is how can they charge me a fee when they haven't actually paid out the money yet. Additionally when I view my account activity online it doesn't reflect exactly the order in which they took money out so what good does it do check your account to see if you have made an error when they don't show transactions realistically. When I threatend to go to the news channel problem solvers and the FDIC they suddenly refunded half of the $256. in fees. That's because they don't want their practices brought made public.
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