lights

"Last year, overdraft and insufficient-funds charges totaled nearly $35 billion and comprised about 90 percent of banks' consumer-fee income, according to a study by the consulting firm Bretton Woods Inc."

Read the rest here:
http://finance.yahoo.com/expert/arti...eyhappy/181074

Daedalus

Wow. I also found this shocking:

My credit union does right by me. Several times I've had them reimburse me for some minor fees. They even offered to pay the late fee I got from another bank's Visa because my credit union changed their electronic payment clearing house.

lights

cool. i hear credit unions are the way to go if you're a member somewhere of something...

but yeah, the article shows yet another side of the banks that aren't so great.

InfiniteNothing

Local credit unions rely on word of mouth in a certain area and therefore are very interested in maintaining good relationships.

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VTGreg

I don't think it is a secret that those that aren't very good at managing their money account for a significant amount of revenue in fees for banks and credit card companies. Typically, if you are in good standing with your bank or credit card company you can get some fees waived if you miss an occasional payment.

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lights

it may not be a secret but the comparison to payday loan guys and the bank fees was interesting.

anyway, the sheer amount of money that is made with these fees was shocking to me as well as i couldn't comprehend how such a fee could add up to such a large number.

i guess i'm the only one shocked since you guys are now calling me stupid? forgive me for not bouncing or using the overdraft thing on my checking account. geez.

Nija

Balance your checkbook. Or, you know, don't.

I can say I haven't overdrafted, or balanced a checkbook in almost 7 years. Of course, now I've jinxed myself and I'm going to get bent over by the bank. Thanks for making me feel smug.

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"Nija is the dark soul of gotapex. We don't like to talk about him." - LPMiller

lights

huh?
i made you feel smug?

Thesifer

Personally, since they are pretty clear and upfront about overdraft fees (and you are basically taking a loan) And these fees are generally around $25, I don't have any problem with it. It's not that hard to avoid if you manage your money properly.

It's not as if they are ghost fees. People incur them themselves. Some banks even off one time "Forgiveness" or "Overdraft protection" that's connected to your savings account.

I have personally only went over one time in my life, and it was on a little used account that I forgot was hooked up to my playstation network account instead of my main account. Other then that, I don't find it very difficult to avoid.

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InfiniteNothing

What I've never liked is that overdraft is on by default. I'd rather just get declined at the pin pad.

cheapie

lights...i don't think anyone is cracking on you. and it appeared that nija was just jokingly saying thanks for making him jinx himself.

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