US Bank and their crooked overdraft fees can suck on it!

[Radical Activist]

I left US Bank for a credit union years ago. It was a very smart move. Not long after leaving I read an article about US Bank significantly increasing their profits by charging more fees on their customers. I had personally felt the pinch of that corporate strategy.

I won't tell the whole story but here's the main points of how US Bank's scam worked in my case:

They changed my account without permission so that my check card would process payments even if I didn't have the money available in my account. I wasn't allowed to change it back so that purchases would be declined if my balance was too low.

They removed the overdraft protection that took from my savings account to cover overdrawn payments. Once again, without asking.

I was probably notified by a 12 page mailing in tiny 8 point font that no one read.

When I asked for overdraft protection to be restored (after being surprised with overdraft fees) I was told I didn't qualify for it because I had problems keeping my balance. In other words, I couldn't have overdraft protection because I might use it.

The overdraft fees for going over my balance kept going up from $20 to $39. Then more fees were added for not keeping a positive balance.

They created the concept of "available balance." In effect, they figured out how to charge me for going over balance even when I had enough money in my account!

They would arrange daily check card purchases in order from largest to smallest, thereby ensuring that if I made multiple purchases in a day I would be charged an overdraft fee for ALL of them instead of just the one that took me over balance.

They wouldn't notify me of overdrawn balances by phone or email. It would take several days for something to arrive in the mail while I made more charges and unknowingly racked up more outrageous fees.

In short, the people who run US Bank are crooked assholes. It was a set up to guarantee they could charge hundreds or thousands of dollars even if someone responsibly watched their balance. Their games cost me over $1,000 at a time when I could barely make rent. Since I refuse to pay the final fraudulent charges that pushed me to leave (and I get shuffled around automated phone line hell when I call US Bank about it) I've had their debt collector harassing me for years, often with illegal tactics.

What irritates me even more is seeing them on college campuses offering "free" checking accounts. They know that college students with low checking account balances are the most likely to get slammed hard by their fee scam. It's a trap!

I've never had a similar problems since switching to a credit union that doesn't look at its customers like a vampire looks at bare necks.

Why bring this all up now? I've been getting notices from my credit union about policy changes mandated by new federal laws. In many cases, it's no change for my credit union, which already has good policies.

But the new banking reform makes the overdraft fee scams US Bank played on me ILLEGAL!!! The federal government finally acknowledged that it's crooked behavior.

My response:
1) Suck on that US Bank a-holes!
2) This isn't the first thing Obama has done that made a direct impact on me an my community (like new green jobs and other stimulus projects). Anyone who ignores the reality of what's happening to repeat Green Party talking points about everything Obama does being a giveaway to corporations can shove it!

I can see the reality of what's going on for myself. I'm not going to ignore and belittle positive change just because some cynical pundits and bloggers need to make themselves feel self-righteous about supporting Nader and Edwards first.

I choose to push for more change while I celebrate the significant progress already being made.

[Crazy Dave]

1. From BOA to local credit union last year

I should have done it years before but you get into lifetime habits that are hard to break.

[Radical Activist]

3. For a while,

it was nice to have a bank with branches in many cities when I was moving around for jobs. It wasn't even a US Bank when I opened my account. But there's a point when I finally realized I was deliberately being screwed as a matter of company policy and that there are much better options. I should have left sooner.

[dkf]

2. Makes you wonder how they have any customers left.

Starting up my account at a credit union straight out of college was the best advice I got from Mom and Dad. I can't even relate to all these horror stories. The credit union made a $1000 line of credit mandatory to open a checking account and there are no extra fees other than interest if you use it. I've never used it because I panic when I don't have a couple months emergency fund in there but it saved my siblings many times.

[Radical Activist]

4. Good move.

I wish my parents had done that. Credit unions are far superior.

[madrchsod]

5. they have`t closed out my account for over 8 yrs now....

every month they send a statement saying i have 50 cents in my account. why would they do that? it seems i owe over 350 in check charges that they have been tacking on each month. as soon as i try to use or withdraw the 50cent then i`ve activated my account. i filed bankruptcy on them last yr and then they sold off the debt..but they still send me statements.

us bank sucks

now i bank at my locally owned bank/saving and loan.

[Radical Activist]

7. They wouldn't close my account when I asked them too.

I had already payed off everything I purchased with my check card but they wanted to keep it open to keep compounding fees on top of fees. They shouldn't be allowed on college campuses.

[customerserviceguy]

6. At this point

it's well known that if you leave your money with the big banksters, you're going to get robbed. Your experience with US Skank can be repeated with every other major financial institution out there.

I switched my regular banking over to a local bank, they've done a fine job of taking care of me. The credit unions around here just aren't ready for prime time, they're nowhere as good as the ones I left behind in the Pacific Northwest. I still have some savings at the last credit union I used, maybe the fact that the institution is inconvenient to get to is why I keep it there.

The only thing that will stop the banksters is if people stop feeding the beast.

[Radical Activist]

9. Absolutely.

I also like credit unions over banks as an economic model. I'd like to see it expanded in other areas of the economy.
People need to withdrawal their support from the big national banks by never doing business with them. I even look use ATMs from smaller banks over national ones if I know I'll be charged a fee either way.

[SpartanDem]

8. I've read this is going to cost banks $10 to 15 billion alone

and this doesn't include the other things in the credit card reform bill that has cost banks billions. But you're right some people will swear up and down that Obama has done a single thing benefit the average person.

[Radical Activist]

10. Hey, it sounds like you actually read my entire post.

Thanks.

[Radical Activist]

11. Sunbump

[Radical Activist]

12. last bump for monday