TEN- YES, 10 over draft fees UPDATE pg3 #56 - Page 4 - Mothering Forums

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Old 09-20-2009, 04:10 PM
 
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I am all about personal responsibility. However, the fact that banks will debit the largest amount in a day is ridiculous. The person could be keeping their checkbook register updated to the minute and if they were faced with a decision to make a purchase that they know would result in an overdraft, they are making that choice. So, let's say someone started the day with a $40 balance, they make 3 purchases that day that are each $10 and at the end of the day they need to make a $35 purchase. So, logically & chronologically - the person would have a $10 balance & needing to make that $35 purchase would result in their account being overdrawn by $25 plus the overdraft fee. But, what the banks are doing, is deducting the $35 amount first, so then the person has a balance of $5 so now their end balance will be negative $25 plus 3 overdraft fees. It is unethical.

I use a credit card for all purchases because:
1) I don't have to play games with banks (even though we belong to a CU that we love)
2) I get "points" that I get to use for gift cards, etc. that are really nice to have at Xmas time (last year we didnt pay for any Xmas gifts out of pocket, used giftcards from our points to purchase all of our gifts)
3) I don't have to keep a register. I can look online and see my balance and there's even a spending analyzer so I can see where our money is going each month

freethinking mom to DD 4/2006 and DS 1/2010
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Old 09-20-2009, 07:41 PM
 
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The easiest way to avoid this is to get rid of the debit card and switch to a credit card. Every time the bank tries to give me a debit card I refuse. You can still use plastic, but you only touch your bank account once when you pay the credit card bill. It gives you a chance to dispute charges before the money actually disappears from your account. The catch is that you do need to keep track just like if you were using a debit card so you never spend more than you already have in the bank. Its pretty easy since you can get a credit card where you can watch the completed and pending charges online.
THIS - all the way.

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Old 09-20-2009, 11:09 PM
 
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I agree with using a credit card for day to day, but just a warning. Credit card transactions usually don't show up online (or even exist as a charge at all as far as the company is concerned) until 1-3 days after you actually spend the money (usually called the "posted date"). If you look at your credit card bill, the date of each transaction is not the same as the date you actually made the purchase. As a result, it is possible to go over your credit limit without it being declined, if you make another transaction before the previous one is posted. Of course, going over the credit limit will result in a fee. It is probably a lot less than overdrafting though (it was $20 when it happened to us). We had a $1000 credit limit, we paid it off completely every month, but when you are putting every single thing on the credit card, including gas, food, and even some bills, it is really easy to spend $1000 in a month. Luckily, we have a higher credit limit now, so we don't have to worry about this anymore, but I just thought some others could use the warning.

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Old 09-21-2009, 03:44 PM
 
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That exact thing happened to us. We had $110 in the bank. A $9 hold went through - leaving $101 available. Then a check for $103 cleared. BOUNCE. Fee #1. Then a charge for $2 or some small amount. BOUNCE Fee #2. Now our account is officially negative $175. So this is when the $9 hold is unheld. BOUNCE Fee #3.

Now, if you look at that. There is $110 in the bank, 3 amounts, all under $110 are charged. How can you get 3 overdrafts? At least 1 of the 3 should've gone through. For this point I get one fee refunded and only owe $70 in bounced fees. Lesson learned about shady bank practices, which further reinforces my love for my Credit Union.

Awesome work for getting 4 of those fees refunded. That's giving you 33% off!

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Old 09-21-2009, 09:13 PM
 
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Originally Posted by PaytonPlace View Post
I am all about personal responsibility. However, the fact that banks will debit the largest amount in a day is ridiculous. The person could be keeping their checkbook register updated to the minute and if they were faced with a decision to make a purchase that they know would result in an overdraft, they are making that choice. So, let's say someone started the day with a $40 balance, they make 3 purchases that day that are each $10 and at the end of the day they need to make a $35 purchase. So, logically & chronologically - the person would have a $10 balance & needing to make that $35 purchase would result in their account being overdrawn by $25 plus the overdraft fee. But, what the banks are doing, is deducting the $35 amount first, so then the person has a balance of $5 so now their end balance will be negative $25 plus 3 overdraft fees. It is unethical.
Yes, and some banks will intentionally run the debits before adding the deposits. Totally unethical IMO! So in your scenario, imagine the customer deposited her check that morning, the bank wouldn't put it in until the debits were run. That may very well happen to me (and everyone), luckily I"m not in the position where that would be a crisis. Unethical!!!

Of course they want to make a profit, everyone knows that, but I can't believe other people in this thread are defending these unscrupulous practices. You don't think the banks--with their hefty payment of taxpayer bailout money don't forget--and their zero Fed borrowing rate--should be regulated to only charge one fee per bounce? Obviously Canada does. People are willing to argue that the banks should be allowed to totally suck the poorer consumer dry? Because clearly this little set-up is designed to prey on the lower-earning consumer, who--surprise!--doesn't seem to have much of a voice in our society.

Really, this is a head scratcher for me. Not that there are greedy businesses, but that consumers would defend it.
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Old 09-23-2009, 05:04 PM
 
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i hear you, i have been that mama-in the bank office with the baby on the lap, crying over the impossible fees and lost money and hopeless feeling it spins you into.


i think you should picket the bank!!

Heavily tattooed and Dready Mama to my girls. YES we are STILL NURSING! love to and
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Old 09-23-2009, 05:17 PM
 
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I heard Bank of America is going to change how some fees are applied beginning in mid-Oct. I don't remember all the specifics but if an acct is overdrafted less than a certain amount, they won't impose a fee as long as it's correct within five days, there will be a limit on how many overdrafts will be assessed each day, and customers will have the option to have their sale declined instead of being able to go into overdraft. I wish more banks would do that, especially the last part.

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Old 09-23-2009, 05:30 PM
 
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Originally Posted by Tradd View Post
A good way to avoid this is to use your debit card with your PIN. That means it's considered like an ATM withdrawl and it's immediately deducted from your available balance. Just swiping your debit card (aka the credit function) means that sometimes it's several days before it's taken out of your account, depending on the merchant.

So, use your pin and don't just swipe it and sign. Makes a huge difference. I do this whenever possible. I'm surprised no one else on this thread has brought this up (or maybe I just wasn't reading quickly enough).

Check with your bank though - sometimes smaller ones (like my old bank) consider using your PIN when making a purchase to be a "foreign ATM fee" and will charge you - it was $1 at my old bank.
This explains a bunch. The whole debit card thing was not making sense to me, because in Canada, you always use your PIN with your debit card. You can't use it like a credit card.

I used to have a chequing account with overdraft that did the $5/mth if you went into overdraft plus interest (19% yearly). But then I moved to using a credit card for the majority of my purchases. I also have a line of credit for my day to day banking.

With most of our major Canadian banks, a line of credit account can be used just like a bank account. I can use my debit card (with PIN) to make purchases, I can write cheques, I can have a positive balance (although it doesn't accrue interest which is fine for daily banking) but when I am negative I only get charged the interest rate on the line of credit which for me is approx. 7% YEARLY, so that means monthly interest is WAY low. For being $5000 negative with hundreds of transactions (while we were renovating), interest for one month was $17. No extra charges for going negative and no charges per transaction. Your interest rate can be even lower (like 3%) if you've got your line of credit in a total equity plan with your house mortgage at that bank.

Tofie ~ mama to DD1, DD2 and Pookie v3 debuting December 2011
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Old 09-23-2009, 05:33 PM
 
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Originally Posted by Kyamo View Post
I agree with using a credit card for day to day, but just a warning. Credit card transactions usually don't show up online (or even exist as a charge at all as far as the company is concerned) until 1-3 days after you actually spend the money (usually called the "posted date"). If you look at your credit card bill, the date of each transaction is not the same as the date you actually made the purchase. As a result, it is possible to go over your credit limit without it being declined, if you make another transaction before the previous one is posted. Of course, going over the credit limit will result in a fee. It is probably a lot less than overdrafting though (it was $20 when it happened to us). We had a $1000 credit limit, we paid it off completely every month, but when you are putting every single thing on the credit card, including gas, food, and even some bills, it is really easy to spend $1000 in a month. Luckily, we have a higher credit limit now, so we don't have to worry about this anymore, but I just thought some others could use the warning.
PCF Mastercard does this in Canada but the $20 fee is only if you are over the day your monthly statement gets processed. So, you can be over all month as long as you make a payment BEFORE statement date so you're not over when the statement is printed.

Tofie ~ mama to DD1, DD2 and Pookie v3 debuting December 2011
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Old 09-23-2009, 08:54 PM
 
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well, well, well...

It seems the banks have done some back tracking and retooling to try to avoid a full-blown congressional investigation....

I can't get it to come up, b/c it just now aired on the NBC nightly news. But I'm sure it will be up in a few minutes, when the show is over. Encouraging overall, but still not enough, if you ask me.
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Old 09-23-2009, 09:02 PM
 
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Originally Posted by Tofu the Geek View Post
PCF Mastercard does this in Canada but the $20 fee is only if you are over the day your monthly statement gets processed. So, you can be over all month as long as you make a payment BEFORE statement date so you're not over when the statement is printed.
I guess the rules are probably different depending on the bank. I think we did correct ours before the statement date (not positive, this was awhile ago) and were still charged. It was a CIBC VISA.

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Old 09-23-2009, 10:42 PM
 
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Originally Posted by ferrum97 View Post
I heard Bank of America is going to change how some fees are applied beginning in mid-Oct. I don't remember all the specifics but if an acct is overdrafted less than a certain amount, they won't impose a fee as long as it's correct within five days, there will be a limit on how many overdrafts will be assessed each day, and customers will have the option to have their sale declined instead of being able to go into overdraft. I wish more banks would do that, especially the last part.
According the report I heard this won't go into effect until next June though.
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Old 09-23-2009, 11:18 PM
 
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According the report I heard this won't go into effect until next June though.
It looks like some changes will go into effect in Oct, some in June. I heard about it on the Today Show and they didn't specify which went into effect when, but the BOA website does break it out. http://newsroom.bankofamerica.com/in...s=43&item=8538

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