Overdraft Ethics and charges

[djdrew103]

Missouri, USA

In the never ending saga of Overdraft Charges that are unethical, here is simple layout to my problem, possible dilemma and query:

I have an SSI direct deposit checking account. Since Federal Banking regulations pertaining to overdraft charges took affect, I decided to go ahead and "Opt In" for overdraft protection. It isn't wise to some what with my menial income, but I found it a necessity in that often LiHeap (federal energy assistance) ran out of funds early far too often, and I needed the added protection to ensure that my utilities stay on no matter what.

The new regulations didn't help much, as the bank I use enlists all forms of "policies" and rules to charge me for "any" overdraft charge they can get their grubby little hands on.

From excusing transaction errors to the electronic programming or merely policy, I have had to call them almost every other month to argue refunds back for incorrect OD charges.

If I am at the end of my account balance say, and as in one case, used my debit card for pharmacy then groceries and then a bit of gasoline, all being done so with enough of a balance to cover those charges...

then go to pay my utilities using my overdraft protection, the bank was sure to charge my debit for the larger over draft payment towards my utilities, the last one made, so that all other transactions which we valid were then tasked and charged additional OD charges, totaling five charges of $28 a piece.

The bank claims it is the way the retailer markets their transactions even though I know for a fact that the bank has time:date:number of transaction for each individual charge.

Now, with two recent charges newly accrued to my account for NSF checks that they did not have to return nor have to use overdraft features to pay (my check hit the next morning and the SSI deposit covered my checks) I am fed up.

What I wish to know is:

I wish to change banks but must change direct deposit features to my Social Security monthly payment via direct deposit.

If I have a current overdraft charge of $250...
and change my direct deposit to another source...
prior to the bank being reimbursed....
is it a criminal or civil case for the bank to seek reimbursement for the overdraft payment charged to my debit card/checking account?

Thank you in advance, I would think it a matter of simple interpretation?

What law governs the transaction...

No check written, just a debit card withdrawal using the overdraft protection for my checking account.

Is this simple enough asked?

 

[cosine]

Owing the bad bank money are part of conducting business with them is a civil debt. Open another account with another bank now before the debt ends up making it hard or impossible to open one. If the new bank is aware, they may require clearing the debt before opening.

Some smaller banks have more reasonable fees, like the one I bank in at my home town (but they don't have any branches in the big cities). Choose a bank based on how well it can serve your needs.

Do NOT just think your can use overdraft protection as a means to borrow money. It is not for that purpose. Any bank will charge much higher interest rates for a "loan on demand". Get your finances in order so you don't have to borrow to live. If that means going lean, do so.

 

[Wyldrush]

Also keep in mind some businesses do not post credit card transaction the next business day. Some will take 2 -3 days to post as they do not batch out credit cards daily. You might use your card on Mon but will not post till Thursday. While some will post on Tue to your account.

 

[djdrew103]

Thank you so very much for your replies...I was worried that I might find myself in some more serious matters, but was at ends with the way banks abuse your overdraft privileges.

I have constantly tried to avoid overdrafts yet being on Social Security Supplemental bars me from having any other choices, and with the way the government is always running out of funds for assistance programs (energy utilities) I haven't had much of a choice since freezing in the dead of winter or sweltering in the heat of summer isn't much of an option.

I've canceled my direct deposit and am switching to another bank, in this way also switching the cost of any legal charges for filing a dispute in civil court can now be burdened by the first unethical bank to get their inappropriate charges reimbursed.

I haven't much to worry about for my credit rating since being on SSI doesn't allow me much in that area either, having no rating worries anyways.

Thank you once again.

 

[Antigone*]

Also keep in mind some businesses do not post credit card transaction the next business day. Some will take 2 -3 days to post as they do not batch out credit cards daily. You might use your card on Mon but will not post till Thursday. While some will post on Tue to your account.

That fantastic advice is quite sound Advice like yours will result in more OD fees.


When I first got my checking account at 18 I was probably the bank's best contributor to OD fees ~ but guess what they were all my choice. If I didn't keep a running total of my deposits and expenditures, then baby, the fees were all my fault.

The last time I paid an OD fee was over 20 years ago. I absodanglutely refuse... I flat out 100% refuse to pay those damed fees!!!!!

...Oh guess what, Not paying those fees ~ it is completely my choice. You see I have a handy dandy online check register. I journalize my deposits and my charges. I know where I am every moment of the day. If I only have $10bucks in my account then I don't spend $11.

So when I hear people complain about the big bad bank and them taking all their money in fees, I say shame on you for being an idiot. It is not their fault you spent money that wasn't yours to begin with.

 

[whatnow22]

That fantastic advice is quite sound Advice like yours will result in more OD fees.


When I first got my checking account at 18 I was probably the bank's best contributor to OD fees ~ but guess what they were all my choice. If I didn't keep a running total of my deposits and expenditures, then baby, the fees were all my fault.

The last time I paid an OD fee was over 20 years ago. I absodanglutely refuse... I flat out 100% refuse to pay those damed fees!!!!!

...Oh guess what, Not paying those fees ~ it is completely my choice. You see I have a handy dandy online check register. I journalize my deposits and my charges. I know where I am every moment of the day. If I only have $10bucks in my account then I don't spend $11.

So when I hear people complain about the big bad bank and them taking all their money in fees, I say shame on you for being an idiot. It is not their fault you spent money that wasn't yours to begin with.

I dont think that poster was suggesting that they "float" their charges. I think he/she was merely pointing out that the reason your transactions are not always posted in the order you spend is because some companies (gas, smaller stations, etc) batch 2 times a week.

I agree with you that that keeping a deposit list and a hand written transaction sheet so you're always up to date. I think in my entire banking history (10+ years) I have had 3-4 over drafts. I fully expected them and made sure I got myself ok to not have it happen again

 

[Antigone*]

I dont think that poster was suggesting that they "float" their charges. I think he/she was merely pointing out that the reason your transactions are not always posted in the order you spend is because some companies (gas, smaller stations, etc) batch 2 times a week.

I agree with you that that keeping a deposit list and a hand written transaction sheet so you're always up to date. I think in my entire banking history (10+ years) I have had 3-4 over drafts. I fully expected them and made sure I got myself ok to not have it happen again

It should not matter what order the items are posted in IF you have the money to cover all the expenses ~ PERIOD ~ END OF STORY!!!

 

[Zigner]

This OP INTENTIONALLY overdraws his/her account.

 

[Antigone*]

This OP INTENTIONALLY overdraws his/her account.

And the bank should INTENTIONALLY charge him for that privilege

 

[cosine]

And the bank should INTENTIONALLY charge him for that privilege

AND also charge the OP the usual and customer 15% more than providing the service costs ... so they can actually PROFIT from this.

 

[Antigone*]

AND also charge the OP the usual and customer 15% more than providing the service costs ... so they can actually PROFIT from this.

Yes, of course cosine. Do noy be an idiot. The bank has a responsibility to their shareholders to make a profit.

Again, NSF fees are only charged to those who choose to use money that does not belong to them. I am a usual customer and the bank has not profited one penny off me through NSF fees.

 

[TigerD]

I seem to write entirely too many checks and I don't pay overdraft fees.

I wonder why?
Oh, perhaps because I have the money in my account. Funny how that works...

DC

 

[Antigone*]

I seem to write entirely too many checks and I don't pay overdraft fees.

I wonder why?
Oh, perhaps because I have the money in my account. Funny how that works...

DC

Damn those usual customers who are financially sound. No wonder my stock price won't move

 

[TigerD]

Damn those usual customers who are financially sound. No wonder my stock price won't move

lol ... I do have one account with your bank - but it is my two-year-olds. He doesn't need to write many checks.

DC

 

[cosine]

Yes, of course cosine. Do noy be an idiot. The bank has a responsibility to their shareholders to make a profit.

Which is why my suggestion provides for a reasonable profit. Or did you miss that part?

Again, NSF fees are only charged to those who choose to use money that does not belong to them. I am a usual customer and the bank has not profited one penny off me through NSF fees.

There should be a charge for the costs that are imposed on the bank. This includes interest on the amount on loan to the customer, plus a cost factor to cover the bank having more cash ready for such customers, plus the transaction processing costs, plus any costs involved in notifying the customer about the situation, plus 15% of all this as a profit margin.

You don't say if you have incurred any NSF fees. If you have, then apparently your bank charges you just cost and interest alone, and does not add a profit margin. If you have not incurred any NSF fees, maybe that is because you never exceed your amount, or have a protection plan in place. Whatever the situation is for your account, it is not relevant to other people's accounts.