How is it legal for banks to deduct overdraft fees from your account....

[jpeyton]

As of this summer, thanks to the new laws passed, it is not legal for banks to automatically enroll you in overdraft protection. You have to opt-in (like any idiot would do that).

 

[fstime]

If you kept enough money in your account, you would of seen how fast they would have taken away all your overdraft fees.

I guess we all know you are pretty poor now. That or you're a dick, but dicks with money usually get what they want anyways.

 

[Phoenix86]

It's not usury if you're the one spending more money than you have in your account or have obligated your account.

It's impossible to have an overdraft if you balance your checkbook and don't spend more than you have.

Irony?

Usury's most common legal example is excessive charges on LOANS, IE spending money you don't have.

In a looser definition, it's excessive "handling" fees on any transaction.

http://www.lectlaw.com/def2/u015.htm
The civil or criminal wrong of charging interest that is beyond the legal limit set by a State. The illegal profit which is required and received by the lender of a sum of money from the borrower for its use. In a more extended and improper sense, it is the receipt of any profit whatever for the use of money: it is only in the first of these senses that usury will be here considered.

Overdrafts meet both, and I suggest fees on them should be governed under the same legislation. "It's not a loan!", fine deny the charge at the time of processing.

Or are you really going to justify 3000% short term loans?

 

[vshah]

1 cc, 1 checking acount, 1 savings account. my credit union lets me use funds in my savings account to cover insufficient balance in my checking account. not that it ever happens though...

 

[JasonSix78]

Thread reminded me of this:

http://www.youtube.com/watch?v=J0rSXjVuJVg

 

[her209]

if it's the same day, the bank has the right to order the payments as they want. in other words, 1. 50, 2. 40. 3. 30 -overdraft 4. 15- overdraft 5. 5-overdraft

three overdrafts

Hahaha... the bank has "the right"? Care to explain what reason the banks would reorder transactions?

 

[Razgriz]

Hahaha... the bank has "the right"? Care to explain what reason the banks would reorder transactions?

$$$$$$$$

 

[spidey07]

Hahaha... the bank has "the right"? Care to explain what reason the banks would reorder transactions?

They aren't in business to make you happy. The business of business is to make more money.

 

[Andrew1990]

Hahaha... the bank has "the right"? Care to explain what reason the banks would reorder transactions?

Banks dont stop there. They rearrange purchases from 2 days previous so you owe them more than a single overdraft.

Banks are a scam when it comes to this.

 

[Locut0s]

You know all that fine print at the bottom you sign off on when you open an account? Basically there's a clause in there that allows them to do almost anything they want.

 

[Newbian]

You know all that fine print at the bottom you sign off on when you open an account? Basically there's a clause in there that allows them to do almost anything they want.

That explains why they were in the neighbors bed naked and doing the mans wife.

 

[zinfamous]

http://www.ehow.com/how_5735178_go-cash-only.html

1: where do you stash the money? a mattress?
2: walking out of a bank every 2-4 weeks with your salary, in cash? no thanks
3: the post office charges a fee for each money order now. I think it's up to $3? No way in hell would I willingly pay $3 on every bill that needs to be paid.

 

[pontifex]

im sure when you sign up for your bank account there is a clause about it.

my guess also.

 

[nick1985]

1: where do you stash the money? a mattress?
2: walking out of a bank every 2-4 weeks with your salary, in cash? no thanks
3: the post office charges a fee for each money order now. I think it's up to $3? No way in hell would I willingly pay $3 on every bill that needs to be paid.

Seriously. That had to be one of the dumbest articles I have ever read

 

[jlee]

1: where do you stash the money? a mattress?
2: walking out of a bank every 2-4 weeks with your salary, in cash? no thanks
3: the post office charges a fee for each money order now. I think it's up to $3? No way in hell would I willingly pay $3 on every bill that needs to be paid.

Hahah..meanwhile, some of us are getting $50 (or $500, as above) statement credits and enjoying free extended warranties on our stuff.

 

[Leros]

I had an even worse experience. I was going out of town for a while, so I wrote my landlord two rent checks and postdated one for the next month.

I had $1000 in my checking account so I used my debit card for making all sorts of small purchases ($3-20). About ten days later, my debit card stopped working saying I had reached my limit, which meant I had reached my maximum overdraft ($700).

Turns out that my landlord cashed both rent checks, so every little purchase I made was coming with a $35 overdraft fee. My bank told me that postdating a check doesn't legally mean anything and you can cash a check before the date on it. I ended up paying something like $550 of overdraft charges.

 

[TrueBlueLS]

I work for a rust belt bank. I see a lot of people getting fees with the way that everything is. You have to keep track of every penny you spend and be able to prove it. Do I think that paying $35+ for a single item that overdrafted your account is fair? Hell no. Bad part is I don't make up the rules.

 

[her209]

They aren't in business to make you happy. The business of business is to make more money.

And you wonder why there was so much hostility from the general public when it came to the bank bailouts.

 

[Gothgar]

I used to have a Guaranty Checking account

They have got to be the shadiest bunch of assholes when it comes to this kinda thing.

Check my account see that a few things had hit my account, processed mind you. A check goes through the next day that overdraws the account.

Now I look at my account again online the items that had hit my account are now pending (WTF) and show as hitting AFTER the check that overdrew the account.

I was hit for 4 overdraft charges at 35 bucks for those when they were pending, then ANOTHER 4 when the were processed.

I called, and they said that yes, they charge you for an overdraft twice per occurrence... and they pretty much couldnt confirm or deny that the charges were processed, then put back into pending...

I no longer bank there.

 

[disappoint]

can you opt out of over-draft "protection"?

With some banks you can. But if you do, your debit card purchase will be denied or your checks will bounce when there's not enough in your account to cover the cost. If your checks bounce you might be charged a fee from the retailer.

 

[Leros]

I forget what is is called, but I set up my checking account with a thing where it pulls money out of my savings account instead of using overdraft. They told me it doesn't cost anything at all.

 

[darkamulets]

Really? You mean the banks have no responsibility in causing excessive overdrafts? Example:

I have $100 in my checking account. I spend in the following order:

$5 for coffee
$15 for lunch
$30 for gas
$40 for clothes
$50 for groceries

What should my overdraft fees be?

If you have problems with not having enough cash to cover you then what you do is the following:

Skip the coffee, make your lunch or get a special somewhere (5 dollar foot long). If you're doing groceries you shouldn't need to buy lunch anyhow. Buy clothes after next pay cycle. You don't OD!

30 + 50

 

[rudeguy]

I forget what is is called, but I set up my checking account with a thing where it pulls money out of my savings account instead of using overdraft. They told me it doesn't cost anything at all.

I have that hooked up too but apparently it didn't work this time because blah blah blah

I'm over it now. Just another expensive lesson learned. I would still really like to sue the bastards.

 

[her209]

If you have problems with not having enough cash to cover you then what you do is the following:

Skip the coffee, make your lunch or get a special somewhere (5 dollar foot long). If you're doing groceries you shouldn't need to buy lunch anyhow. Buy close after next pay cycle. You don't OD!

30 + 50

I was using it as an example of a typical situation where one could overdraft.

 

[Bignate603]

Are people seriously running with such a low balance in their checking account that they are constantly getting hit with these fees? If you're ending up with such a low balance that your monthly netflix bill is causing an overdraft you're not really managing your money that well.