Posted on 01/18/2024 8:25:08 AM PST by SeekAndFind
One thing everyone should do (and is required already) is ask for the Reg E opt out. Under Reg E, you can tell your institution whether to pay debit card transactions if they will overdraw your account. As an example, if you are at the grocery store and have a $101 charge processed on your debit but only have $100 in your account, the bank can decide to pay or not pay. If you have signed up for overdraft against your card, they will pay and charge you an overdraft fee. If you don’t sign up then they will likely reject the transaction and the cashier will say that your card did not go through.
It is an affirmative opt in but many institutions at time of account opening make it very easy for you to sign up for it and don’t explain the repercussions.
It’s OK to charge an overdraft fee, but banks have been getting greedy. Also, they seem to raised the fees about in synch, so there is no free market aspect.
Pigs get fat, but hogs get slaughtered.
Governments are very bad at trying to control the economy. The only way a capitalist country’s economy can work effectively if by allowing Adam Smith’s invisible hand do its thing.
This does not mean that everything will be fair or that people will not unfairly “punished” or unfairly gain an advantage, only that the market of supply and demand will correct the problem.
So - huge question here:
This would only apply to the top 145 “Mega-Banks”, not to the smaller regional and local banks?
Say you have an overdraft on an account at Bank of America - they would be limited in what they could charge for the overdraft to $3,4, 14 - whatever...
But the exact same scenario at your local hometown bank that only has a couple dozen locations... they can still charge $20-30 - whatever they deem appropriate.
OK - so: whatever became of equal protection under the law? I’m no defender of big, predatory banks - but I am also very much not a fan of government regulations.
WHY ARE THE BANKS BEING BLAMED FOR OVERDRAFT FEES????
AS A BOOKKEEPER FOR OVER 66 YEARS-—
OVERDRAFTS ARE DIRECTLY THE FAULT OF THE ACCOUNT HOLDER-—
NOT THE BANK
THE “I CANNOT BE OUT OF MONEY-—I STILL HAVE CHECKS” crowd.
If the substantive action is not clearly required by Congress, it is too much for to do by regulatory agency.
Excessive bank fees and interest rates should have been dealt with by Congress decades ago.
Wait - so charging a penalty fee for writing what is technically an illegal check is wrong? Holding people accountable for irresponsible behavior is wrong? Being “poor” (however you are defining that) is grounds for writing hot checks?
OK - then stop the practice of covering those over-drafts and just go back to returning/bouncing those checks. THEN the consumer gets tagged TWICE - one by their own bank, and again by the one they wrote the check to.
Exactly.
I’ve had banks still charge the overdraft fee even if the transaction was rejected and not paid
That’s mainly correct.
Keep telling yourself that. Usury and bailouts are their profits.
It boggles my mind that intelligent people stand up for banks still.
Unless they work for banks.
If enough people become poor, they will just vote to take your stuff and destroy the economy.
There needs to be a balance.(and fewer Central Americans in our country illegally)
I owe zero dollars and pay no fees.
Getting past the issue of the government setting some guidelines, I think this is actually a good idea. Despite everyone’s best efforts and intentions, sometimes things happen that you don’t intend on. Like an autopayment that goes through with the wrong time, or, what I’ve gotten tripped up on recently as they count my expenditures before the deposits on a given day, and then try to charge me for those expenditures even though the money was already deposited. $30 a shot is outrageous, and yes, they do reverse it when I call them, but the banks do need some regulation to prevent gouging customers, taking it undo advantage.
Yes, and if Biden does accomplish this, he gets the credit for it, and most consumers will appreciate the results. These are moves that will win votes.
—”I’ve never paid one.”
Me neither, but...
Recall the House Bank scandal???
Mostly dims.
Just another vote-buying scheme.
Forget about the banks and think about businesses. Don’t we want a deterrent to floating bad checks? Maybe give (some or all of) the fee to the businesses to help/protect them? Banks should be closing accounts of repeat offenders...
I closed my last bank account in 1988.
Have been using credit unions since then.
I ran call centers for a large bank. It cost about $6 per call for a human to answer the phone. That was the fully loaded cost.
If people had any idea how many calls we got every day from idiots who bounced checks all over the place—looking for us to reverse the charge—you would find a $3 fee outrageous. The cost to answer the phone is just the tip of the iceberg in terms of what overdrafts cost.
How about people know what is in your account? With online banking it is not difficult at all.
Wise decision. I was Jax Navy FCU back in the day.
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