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Guess how much Banks made on Overdraft Income in 08


Jackass
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That is some poor decision making or mismanagement on somebody's part, but I'm sure the banks will get slammed for this instead of the people that caused it.

You actually have a point there but you can surely see that there's a ton of anti-common sense practice in banking regardless of people not balancing their checkbook properly. What banks do with overdrafts is what credit card companies used to do with mailed payments - cheat.

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That is some poor decision making or mismanagement on somebody's part, but I'm sure the banks will get slammed for this instead of the people that caused it.

 

 

I know several people who have left Citizens Bank and the complaint was "they take your money out for your after a a few days purchase, then after a few days it comes back in....then goes back out again" - this can cause a great deal of confusion to anyone not following their money closely and have relied on the online bank statement to offer accurate information...

 

in the end, it is the fault of the person who owns the account, but my response is "what do you expect to happen when you have a system that offers an accurate online banking service which turns around and plays with the amount listed in your account?"...

 

I haven't personally had a problem with this as I know where my money goes....but the average American today has everything fed to them so we don't have to think about things nearly as much as we should....

 

"citizensbank.com says I have xxx.xx in my account today, alright so I have that much to spend on food today" - when i reality, that person has less than that, but thinks a certain transaction has gone through because it said that a day ago, or even earlier in the day....

 

and I will state again that this is the fault of the person who owns their account because you can only be sure of what you have done which leads you to hold you and only yourself accountable - so at the end of the day, these banks are just playing people against their own stupidity....

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not only overdraft - but they in addition to credit card companies and such have massively increased their fees (and interest in the case of credit cards). Alll of this despite getting loans from the government at historically low interest rates. Got to pay for those bonuses somehow.

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"citizensbank.com says I have xxx.xx in my account today, alright so I have that much to spend on food today" - when i reality, that person has less than that, but thinks a certain transaction has gone through because it said that a day ago, or even earlier in the day....
Every bank and credit card company does that. Quit using the online statement as the final word and keep track of your account yourself...you know like you do with a checkbook.

 

Many times when you make a purchase it is just putting a hold on that money. The actual money isn't withdrawn until the merchant closes the credit card batch and the credit card processor is notified that the charge should be processed. During that hold, you still technically have the money, it's just not available to be used. If the merchant doesn't close the batch the hold can expire, or if they close it then the money is transferred or charged against your account.

 

With credit cards it's less of an issue as it's more of a loan, but with Visa/MC debit cards, money that you might be counting on to be available in your bank account might not be available. Many people have been surprised by this when they take a vacation and rent a car, and then have several hundred dollars put on a hold for a deposit that they were counting on for vacation money.

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they also shuffle around the order of how your purchases get posted to maximize fees.

 

For example-

 

1. You have $100 in your account

2. You take $40 out of the ATM at 8am on your way to work.

3. At lunch you use your debit card for $20 worth of gas.

3. Later that evening, say 7pm, you spend $110 at the grocery store on your debit card overdrawing your account at that point.

 

You should be looking at a single $35 (or whatever) overdraft fee.

 

You can look at your online statement that night and see the transactions posted in the actual order they were submitted during the day.

 

2 days later the bank reshuffles and posts your $110 purchase first, creating the overdraft, THEN they post the $40 purchase and then the $20 purchase and hit you with THREE overdraft fee x $35.

 

They explain it as a "service" to their customers ordering the highest amount to post first because they feel that is probably the most important to you, and they want to make sure that it clears first before the other less significant purchases.

 

My thing is, if they are going to provide you with courtesy overdraft allowance, and they aren't going to reject any of the purchases anyhow, why the need to fleece their customers?

Edited by Marauders11
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Every bank and credit card company does that. Quit using the online statement as the final word and keep track of your account yourself...you know like you do with a checkbook.

 

Many times when you make a purchase it is just putting a hold on that money. The actual money isn't withdrawn until the merchant closes the credit card batch and the credit card processor is notified that the charge should be processed. During that hold, you still technically have the money, it's just not available to be used. If the merchant doesn't close the batch the hold can expire, or if they close it then the money is transferred or charged against your account.

 

With credit cards it's less of an issue as it's more of a loan, but with Visa/MC debit cards, money that you might be counting on to be available in your bank account might not be available. Many people have been surprised by this when they take a vacation and rent a car, and then have several hundred dollars put on a hold for a deposit that they were counting on for vacation money.

 

the bolded part is pretty much what I was saying, but they know people take the online statement as fact....especially when their money was already "taken out" and they acknowledge it.....

 

the problem is bank puts it back in after taking it out...and then finally take it out again....

 

my personal take is to withdraw all money and use money orders....or something because whenever you put money into a bank, they loan out 100% of that money.....and still allow you to withdraw from that account as they loan out 100% of it....

 

speaking of 100%...banks are nothing more than a ...100% scam anymore...period.

Edited by Avernus
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they also shuffle around the order of how your purchases get posted to maximize fees.

 

For example-

 

1. You have $100 in your account

2. You take $40 out of the ATM at 8am on your way to work.

3. At lunch you use your debit card for $20 worth of gas.

3. Later that evening, say 7pm, you spend $110 at the grocery store on your debit card overdrawing your account at that point.

 

You should be looking at a single $35 (or whatever) overdraft fee.

 

You can look at your online statement that night and see the transactions posted in the actual order they were submitted during the day.

 

2 days later the bank reshuffles and posts your $110 purchase first, creating the overdraft, THEN they post the $40 purchase and then the $20 purchase and hit you with THREE overdraft fee x $35.

 

They explain it as a "service" to their customers ordering the highest amount to post first because they feel that is probably the most important to you, and they want to make sure that it clears first before the other less significant purchases.

 

My thing is, if they are going to provide you with courtesy overdraft allowance, and they aren't going to reject any of the purchases anyhow, why the need to fleece their customers?

 

I was with you until the bolded. They only provide this courtesy because they can fleece you for it. No one has to choose to spend money they don't have. If you're (not you mauraders, anyone) that bad with money, use an envelope budgeting method. Put $X in one envelope for groceries, $X for gas, etc. You have that cash to spend. Don't use the card if you can't keep up with it.

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Huntington is good about it. They will list the pending transactions in your online statement. Maybe it's rare these days when anyone raves about their bank, but we switched almost 8 years ago and we couldn't be happier. National City was a nightmare....and I had banked with them for almost 25 years. Demon bank.

 

We went with Huntington about a year after they'd set up online billpay/banking. When we first switched, they had one programming omission that was a little screwy, but they've since rewritten it. We each had individual accounts and then the joint account. We both wanted to be able to access the joint account without accessing each other's individual accounts (ie. both be able to transfer money online in and out of the joint account, then online billpay the household bills from there). They hadn't thought of that one yet.....LOL. Really? :wacko:

 

It works now....and in the process, they called and changed all of our accounts to fee-free because we online bank. No ATM fees...no debit card fees...no fees whatsoever. :D

 

I will say their initial loan interest rates for mortgages and cars, etc. are not rock bottom. But they aren't outrageously high or out of line either. It would be nice if they'd cut their current customers a break on some of those loan rates simply because we already bank with them. But they don't. So we shop those sorts of things. In the end.....with billpay, it doesn't really matter if your loans are with other banks.

 

I don't think we use 2 stamps a month. It isn't a mystery why the USPS is trying to cut back to 4 or 5 days of delivery. Judging by our volume of mail......they could comfortably cut back to 3 days and not overload their carriers a bit.

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:D They were the only major bank with a branch in my little college town. They probably made a mint even back then on overdraft charges from the students.....LOL. Demon bank. And talk about 'banker's hours'.....in a small town. It was pretty big news when they got an ATM.......lmao. :D

 

Gawd.....those were the days......writing a check for $5.89 at the corner grocery to stock my mini dorm room fridge.. :wacko:

I'm getting old. :D

Edited by SteelBunz
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Try 371 BILLION after ATM fees are added in. Yeah..I've been talking about this for a week now and today I had to succumb to the masses and open a checking account. The poor attractive lady I dealt with heard all about it.

 

ATM Fees typically only get charged when you withdraw money from an ATM that's coming from another bank. It's a service that costs the bank money to provide, and so they charge you for it.

 

What does it tell you about the laziness and poor planning of people as a whole that there was this much need to the use of ATMs that resulted in fees?

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I don't have an ATM card; neither does my wife.

 

Go me! :wacko:

 

Same here, we used to have them, but we found we used them all of about once a year so we just got rid of them. I really like the bank we use, it is a regional bank that has been around as long as I can remember. I've been doing my personal banking there for over twenty years. We recently moved the business accounts over to them. Interestingly enough I've never caught them doing anything that wasn't spelled out in the forms I signed when I opened the accounts.

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Meh.

 

You know if you spend more than you have, you get charged.

 

You know if you use an ATM machine that is not your banks, you get charged.

 

 

Why the uproar?

 

Because we are turning into a nation of pussies that want he nanny state to take care of everything for us. Never mind someone has to pay for it eventually, and eventually everyone will be paying for it because fecal matter flows downhill.

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Because we are turning into a nation of pussies that want he nanny state to take care of everything for us. Never mind someone has to pay for it eventually, and eventually everyone will be paying for it because fecal matter flows downhill.

+1000

 

Quit your F'in whining and be responsible with your own money. Actually I may have to take that back because people in a different thread thinks it is bad to try and increase your own money more than the average. Everyone should grow there net worth by the same ratio or something is not fair!!

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my biggest issue here is banks accepting loans at rock bottom rates from the government on account of the economy and than raising their interest rates and fees and such on people who are also suffering from a bad economy. granted - take care of your business - with regards to ATM and overdraft fees - but this seems a little more abusive.

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my biggest issue here is banks accepting loans at rock bottom rates from the government on account of the economy and than raising their interest rates and fees and such on people who are also suffering from a bad economy. granted - take care of your business - with regards to ATM and overdraft fees - but this seems a little more abusive.

 

Yep. Too big to fail means "cheap money for us so we can screw everyone else".

 

Gotta protect those CEO bonuses . . .

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I suppose if I tried hard enough, I could be pissed that banks get bail out money for mismanaging their money and they charge us for doing the same but I keep coming back to the fact that they're not doing anything wrong. At least in that regard.

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