courtesy overdraft protection

Dawoofdaddy · Apr 11, 2005

Banks are charging this fee to depositors. Some banks are charging as much as 31 dollars per overcharge.

It is used when someone uses an atm and unknowingly overdraws their account via atm withdrawals.

You do not have to sign up for this service, it is automatically given to customers.

I'm thankful I don't use atm cards.

TheGeneral+ · Apr 11, 2005

The ATM should not allow overdrafts IMO. They should decline the withdrawal.

Dawoofdaddy · Apr 11, 2005

Agreed. It was the closing piece on tonights cbs evening news. Banks are charging up to $31 dollars per overdraw.

Im sure many will say well people should know what they have in the bank, and I partly agree. But at very least banks should not provide this 'service' prior to the depositor requesting it be made available.

The story did mention that depositors did have some of their fees refunded, but only after much complaint.

I don't use ATM and/or debit cards, and after hearing this story, I won't be anytime soon.

:drink:

TheGeneral+ · Apr 11, 2005

It is an obvious calculated plan to make money by taking advantage of people. My Bank's ATM will not allow this. The transaction will be declined.

Woody0 · Apr 11, 2005

Those fees are usurious. I have a line of credit on my account so if I go over by say $100 I pay the number of days interest at an annual rate of 7.75%.

Don't US banks offer this service or do they just want to rip off the unsuspecting with a "courtesy overdraft protection"?

GreyGoose+ · Apr 11, 2005

Dont go for the ODP (over draft protection) use a line of credit BLC attached to your checking account and there will be no charge for an advance.IF it's not visable to get a line of credit tie a savings account to your checking account in the same manner.

Most banks work off a 28% year in profit from ODP charges and NSF charges

Dawoofdaddy · Apr 11, 2005

Goose, the point is that depositors were not told or given options about the 'service'.

GreyGoose+ · Apr 11, 2005

Sorry just trying to help, understanding and being a part of the banking world i know that somewhere on the checking account its proably in there unless it was mistake on the part of the bank and i would check that first becasue they will credit and make changes i would think. But i do know this

Banks average depositor carries a average yearly balance of less than $3500 and write checks or use a debit card more than 55 times a month and the average profits made on that type of account is making $350 dollars a year for surplus charges which accounts for 63% of the banks total profits.So therefore you are paying them 10%ann to use your money which in ables them to make an average of 12 to 18% on every dollar. So if you dont want to fall into this average stay away from these numbers carry a larger balance or use less of the service to save money you should only be carring about 1% on the bank not 10 or 12 or 18%.

wilheim · Apr 11, 2005

Grey Goose welcome to the Rx. and thanks for the excellent feedback on a fairly complicated matter.

wil.

GreyGoose+ · Apr 11, 2005

Thanks Will, Tell Ken he owe's me a Grey Goose on the rocks..

RPM · Apr 11, 2005

i got popped for over 400 bucks on overdraft fees once. it was 35 per occurence and i had a bunch of little things came in.

paid them the money and closed my account there.

btw, the bank was called bbandt. DONT BANK THERE.

SportSavant · Apr 11, 2005

My Bank's ATM will not allow this. The transaction will be declined.

how do you know? :icon_conf

CHASEMAN · Apr 11, 2005

Wow, pretty interesting that this is happening. My guess is that the smaller banks / credit unions are doing this b/c they are losing business to the larger banks.

Also, it won't take too long for federal/state regulation to put a stop to this practice.

TheGeneral+ · Apr 11, 2005

SportSavant said:
how do you know?

You ever gave your debit card to your cook?

:smoker2:

courtesy overdraft protection

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