$29.5 Billion in Overdraft Fees? How the Big Banks Are Still Screwing Us

[marmar]

AlterNet / By Lauren Kelley

$29.5 Billion in Overdraft Fees? How the Big Banks Are Still Screwing Us
Millions of Americans continue to be screwed by the banks they helped bail out just a few short years ago. It just isn't right.

June 19, 2012 |


Remember when America’s big banks destroyed our economy, and then got bailed out by the government to the tune of trillions of dollars? And remember how, in the wake of that disaster, the government passed some important but relatively modest regulations to keep the banks from fleecing consumers – the very people whose taxpayer dollars saved the banks from ruin – quite as badly as they had been in the past? Well, it turns out that after all of that, banks are still doing wrong by Americans by quietly ratcheting up fees and not being forthright about their policies.

A new report from the Pew Charitable Trusts’ Safe Checking in the Electronic Age Project finds that, despite new rules meant to keep banks from increasing fees on consumers, banks that offer consumer checking accounts have increased fees in some cases, engaged in hidden-fee trickery and pushed high-cost, low-benefit services on customers.

The nerve.

The report looked at the 12 biggest banks in the country based on deposits, as well as the biggest credit unions, and found their practices and transparency to be lacking. One of the biggest ongoing problems is overdraft fees, those pesky $35-ish charges you get when you accidentally take out more cash than you have in your account. Pretty much everyone, even the most diligent of checkbook balancers, has had at least one overdraft fee experience. In the worst cases, it’s possible to rack up hundreds of dollars in overdraft fees without realizing it, even if you checked your account balance before you left the house, turning a morning of running small errands into one hell of an expensive shopping trip. (That $1.99 roll of toilet paper you bought? Suddenly it costs $36.99.) As with many of these penalties, it is often the people who have little or no wiggle room in their budgets who are hit hardest with the fees. ...................(more)

The complete piece is at: http://www.alternet.org/economy/155898/%2429.5_billion_in_overdraft_fees_how_the_big_banks_are_still_screwing_us_/

[INdemo]

1. Ok This is what they do...

Last edited Wed Jun 20, 2012, 03:58 PM - Edit history (1)

I have a direct deposit going to my checking account ont the first of each month that is usually posted at 12:01 midnight on the 31st or 30th but depending on any outstanding checks written even on the 30th or 31st deposit never credited first..If there are checks to post then my check will not post to my account until the next day and only after the debits are posted..Now this is how Wells Fargo does it and I have complained but nothing happen..My solution was to switch to local credit union that assured me they post all credits first...When I complained to customer Service they told me that "this is how our system is set up" and my reply was so "you purposely cheat people" and they said call it what you'd like but thats our way..
And besides that now when I walk into the Credit Union I get a genuine greeting not one of those scripted greetings that has phony written all over it...Its not that I try and beat the bank but I will have an adequate balance but their book keeping system is set up to cheat a customer out of their money...Here is another one...which I am convinced that big banks dont want the average consumer.. they want the CD holders the money market people and not those that write checks or use debit card often...They charge a service for what used to be free and some accounts are limited for the number of withdrawals...whereas with credit union they said they never heard of such a thing ....quote...
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[raccoon]

2. Credit Union. Take your bucks out of the bank and put them in a credit union. I've been with one

for more than 25 years. Their fees are lower than banks.