topic Re: A new way to screw checking customers in SmorgasBoard

A new way to screw checking customers

Anonymous — Mon, 19 Jul 2010 23:29:22 GMT

So when this whole credit card act went through, I opted to allow my bank to pay overdrafts, since I have overdraft protection set up on my checking account to get a cash advance from my credit card.

Just today, I learned that they now charge a $15 per transaction advance fee for their service.... So they waited for all their overdraft protection customers to opt in before pulling this BS. Now I have to call and not only opt out, and no doubt listen to an annoying lecture from the rep, but I have to cancel my overdraft protection. I'm sure this is pretty commonplace now, but I haven't heard anyone complain about it yet, so is this happening to a lot of people?

Re: A new way to screw checking customers

Anonymous — Wed, 21 Jul 2010 12:45:53 GMT

Wachovia was charging $10 per overdraft protection transaction for several years. That may have changed, but I'm not sure as I've never used it.

I just recently read that BofA will begin charging $9 for sending checking account statements by mail, though. And I think that's going to become a trend with the banks.

Gotta love these reforms...

Edit, to add this link regarding the BofA fee mentioned above.

Re: A new way to screw checking customers

Anonymous — Tue, 20 Jul 2010 21:34:39 GMT

@Anonymous wrote:
Wachovia was charging $10 per overdraft protection transaction for several years. That may have changed, but I'm not sure as I've never used it.

I just recently read that BofA will begin charging $9 for sending checking account statements by mail, though. And I think that's going to become a trend with the banks.

Gotta love these reforms...

$9 bucks for a statement?!!!

A ream of paper costs less than that.

I honestly believe that many will be in trouble for charges like that. Maybe not soon but, I see it coming.

Same with a merchant charging you to use your debit card. I have read it is illegal for them to do that. They do it because the banks charge them.

Re: A new way to screw checking customers

daisyduke — Tue, 20 Jul 2010 23:44:12 GMT

Two Words: Legal Thieves

Re: A new way to screw checking customers

Imhotrodcrazy — Wed, 21 Jul 2010 03:49:35 GMT

@daisyduke wrote:
Two Words: Legal Thieves
I can reduce that to one word.........." crooks"

Re: A new way to screw checking customers

Anonymous — Thu, 22 Jul 2010 08:41:27 GMT

Yeah JP Morgan/CHASE hooks the customer, offering a quasi 3% back when using your debit card...

BUT if you screw up, they will charge the death out of you!

Re: A new way to screw checking customers

MattH — Thu, 22 Jul 2010 23:47:27 GMT

@Anonymous wrote:
@Anonymous wrote:
Wachovia was charging $10 per overdraft protection transaction for several years. That may have changed, but I'm not sure as I've never used it.

I just recently read that BofA will begin charging $9 for sending checking account statements by mail, though. And I think that's going to become a trend with the banks.

Gotta love these reforms...

$9 bucks for a statement?!!!

A ream of paper costs less than that.

I honestly believe that many will be in trouble for charges like that. Maybe not soon but, I see it coming.

Same with a merchant charging you to use your debit card. I have read it is illegal for them to do that. They do it because the banks charge them.

Technically a merchant may not charge a fee for using plastic, but in many jurisdictions may offer a discount for paying cash. Similarly, I once lived in a State where it was against the law for landlords to charge a penalty for paying the rent late, so it was universal practice among landlords there for the lease to specify a monthly rent of fifty bucks over the advertised rent, with a clause giving a discount for paying before the first of the month.

Nobody has ever drafted a law without loopholes, and I doubt anybody ever will.

Re: A new way to screw checking customers

IOBA — Fri, 23 Jul 2010 00:08:51 GMT

Mississippi. Was there and the merchants charged a fee for using a credit card. By the time I saw the notice, conveniently blocked by an employee leaning on the register, listening avidly to the conversation, it was too late. I asked how the total came to be so much higher than the purchase price. She told me there was a "fee" for using the credit card. She had to shove the employee aside to show me the sign.

I told her to cancel the transaction and I would pay cash. They refused.

My dh had picked up some more items as I was paying for the purchase. We left them on the counter. And I called my cc company. They told me that charging us an additional fee violated their agreement with the merchant. The money was credited back and the merchant lost that contract with the cc company.

The merchant said it was their right to charge fees. Maybe, maybe not. But make the signage clearly visible BEFORE a customer checks out.

If I need to, I will pay cash for everything. Good for me, although I love the perks of points and cashback. Bad for the economy cuz I will definitely be buying less.

Re: A new way to screw checking customers

22_broke_and_in_debt — Sat, 24 Jul 2010 16:51:17 GMT

@Anonymous wrote:
So when this whole credit card act went through, I opted to allow my bank to pay overdrafts, since I have overdraft protection set up on my checking account to get a cash advance from my credit card.

Just today, I learned that they now charge a $15 per transaction advance fee for their service.... So they waited for all their overdraft protection customers to opt in before pulling this BS. Now I have to call and not only opt out, and no doubt listen to an annoying lecture from the rep, but I have to cancel my overdraft protection. I'm sure this is pretty commonplace now, but I haven't heard anyone complain about it yet, so is this happening to a lot of people?

Ha...I WISH my bank only charged $15 per transaction. They charge $25 per instance, and if you have the overdraft line of credit, they get you at %18 interest. They will also charge you $5 per statement if you're not enrolled in e-banking, as well as $3 if you call and have someone look at your account for a balance inquiry. They charged me a $15 "storage fee" because my points statement was sent back to them by the post office because my PO box was full. The fees are unreal.

The kicker of this is that my bank is a credit union, which is supposed to be slightly more fee and user friendly than the larger national banks like BofA, Chase, Citi, etc. If this keeps up I'm going to go back to getting a paycheck, and start hiding money under my mattress. I think it'll be safer that way.

Re: A new way to screw checking customers

Anonymous — Mon, 26 Jul 2010 22:46:33 GMT

@22_broke_and_in_debt wrote:
@Anonymous wrote:
So when this whole credit card act went through, I opted to allow my bank to pay overdrafts, since I have overdraft protection set up on my checking account to get a cash advance from my credit card.

Just today, I learned that they now charge a $15 per transaction advance fee for their service.... So they waited for all their overdraft protection customers to opt in before pulling this BS. Now I have to call and not only opt out, and no doubt listen to an annoying lecture from the rep, but I have to cancel my overdraft protection. I'm sure this is pretty commonplace now, but I haven't heard anyone complain about it yet, so is this happening to a lot of people?
Ha...I WISH my bank only charged $15 per transaction. They charge $25 per instance,

That sounds more like an overdraft fee. You do realize that I'm saying they charge me $15 if I overdraft with the overdraft protection set up, right? If your bank is charging you $25 to use overdraft protection, then there's no point, as just about any CU charges $25 or less for an overdraft fee. That waives any advantage to offering an overdraft protection service, and warrants that they should discontinue offering that service, lol.

So now, rather than pay a $35, one time fee, I have to pay $15 up front per transaction, then have a charge show up on my CC with 28.99% interest and no grace period, since its a "cash advance."

Re: A new way to screw checking customers

IOBA — Tue, 27 Jul 2010 00:58:09 GMT

May I say, that sucks?

According to USAA, the average household bounces 13 checks in a year. I don't feel like doing the math, but 13 x $35 = a lot of profit! Throw in some daily negative fees...wow. I could retire on that kinda money! Well, as long as I don't bounce any checks, I could!

Re: A new way to screw checking customers

haulingthescoreup — Tue, 27 Jul 2010 01:09:41 GMT

lol, I don't even write 13 checks a year these days!

Oh well, OK, I forgot about checks for the collection plate at church. I definitely don't bounce those. Hate to think about the potential Adverse Action resulting from that...

Re: A new way to screw checking customers

22_broke_and_in_debt — Wed, 28 Jul 2010 18:10:50 GMT

@Anonymous wrote:
@22_broke_and_in_debt wrote:
@Anonymous wrote:
So when this whole credit card act went through, I opted to allow my bank to pay overdrafts, since I have overdraft protection set up on my checking account to get a cash advance from my credit card.

Just today, I learned that they now charge a $15 per transaction advance fee for their service.... So they waited for all their overdraft protection customers to opt in before pulling this BS. Now I have to call and not only opt out, and no doubt listen to an annoying lecture from the rep, but I have to cancel my overdraft protection. I'm sure this is pretty commonplace now, but I haven't heard anyone complain about it yet, so is this happening to a lot of people?
Ha...I WISH my bank only charged $15 per transaction. They charge $25 per instance,
That sounds more like an overdraft fee. You do realize that I'm saying they charge me $15 if I overdraft with the overdraft protection set up, right? If your bank is charging you $25 to use overdraft protection, then there's no point, as just about any CU charges $25 or less for an overdraft fee. That waives any advantage to offering an overdraft protection service, and warrants that they should discontinue offering that service, lol.

So now, rather than pay a $35, one time fee, I have to pay $15 up front per transaction, then have a charge show up on my CC with 28.99% interest and no grace period, since its a "cash advance."

Yes, it's an overdraft fee, to an extent. The technical term they call it by is a "courtesy pay fee" and it is applicable whether you have the OD protection or not (When it's a straight overdraft, it's an overdraft "fee" and when it goes on your line of credit, it's a "privilege"). If you have direct deposit, you automatically have a $500 line of overdraft, with the $25 fee/ charge of course. They also charge you $15 per transaction to MOVE MONEY FROM YOUR SAVINGS INSTEAD. $15 for a computer to automatically draft from my own savings account. IN. SANE.

In a way, you're better off NOT having the protection, since they're getting you for a fee AND astronomical interest. It's like a lose-lose.

I'm just trying to figure out when CUs got so greedy...

Re: A new way to screw checking customers

MattH — Fri, 30 Jul 2010 02:05:53 GMT

@haulingthescoreup wrote:
lol, I don't even write 13 checks a year these days!

Oh well, OK, I forgot about checks for the collection plate at church. I definitely don't bounce those. Hate to think about the potential Adverse Action resulting from that...

I write about six paper checks a year these days. My employers will match gifts to most educational and social service charities, which I make by credit card on a special company website for most of our charitable giving. Since the company doesn't match gifts to our church my wife does those by paper check on her account. I overdrew my account once, over 30 years ago at a bank that was so local the manager phoned me and said, if you have your parents wire money immediately we won't bounce it or charge you any penalties, but don't make this mistake again.

Re: A new way to screw checking customers

Anonymous — Mon, 02 Aug 2010 09:36:40 GMT

Arrgh just reading this forum makes me angry! How do they get away with this?? I got charged $80 for overdrawing my account, (because skype took money when my account had dropped below $4 or something..double arrgghh) I can´t believe they can still do this. The same goes for withdrawing money from a cash point which isn´t your banks. Ridiculous amounts of money..then they still want fees. Makes my blood boil.

Re: A new way to screw checking customers

KingAdrock — Fri, 13 Aug 2010 03:07:03 GMT

@MattH wrote:

Technically a merchant may not charge a fee for using plastic, but in many jurisdictions may offer a discount for paying cash. Similarly, I once lived in a State where it was against the law for landlords to charge a penalty for paying the rent late, so it was universal practice among landlords there for the lease to specify a monthly rent of fifty bucks over the advertised rent, with a clause giving a discount for paying before the first of the month.
Nobody has ever drafted a law without loopholes, and I doubt anybody ever will.

Merchants cannot legally charge a fee for credit cards. Debit cards are still legally fair game. Although It's pretty foolish to do so , IMO. Merchants should try to encourage debit cards vs credit. Debit fees are usually less than 50¢. Credit cards take a per transaction charge and a percentage of the total.