The Overdraft Conspiracy:

[029b10]

Big banks rack up $6.4 billion in ATM and overdraft fees

 

FYI: In 2009, the Federal Reserve Board (Board) amended Regulation E to prohibit institutions from charging overdraft fees

for ATM and one-time debit card transactions, unless the consumer opts in or affirmatively consents to the institution’s

overdraft services (74 Fed. Reg. 59033 (Nov. 17, 2009) and 75 Fed. Reg. 31665 (June 4, 2010)).

 

Would you believe a true story?

Guy goes into bank and when the teller called him up the window the guy ask what his account balance started off the day at.  The teller tells him it was a $101 dollars that morning.

The guy asks to withdraw a $100 dollars.  The teller looks at his computer screen and replies, sorry there are not enough funds in your account for that transaction.

The guys asks to withdraw $80.  The teller looks at his computer screen and replies, sorry there are not enough funds in your account for that  transaction.

The guy asks to withdraw $50.  The teller looks at his computer screen and replies, sorry there are not enough funds in your account for that transaction.

The guys asks to withdraw a $ 1.   The teller looks at his computer screen and replies, sorry but your account balance is in the negative so if you wouldn't mind,   NEXT

How did the customer with a balance of $ 101 leave the bank without receiving a cent and being overdrawn $ 42?  

The customer had $ 101 in his account, but the bank charged him $3 for balance in inquiry so he only had $ 98 in his account when he for the $100 withdraw. 

After the overdraft fee of $ 35 was assessed, the account balance was $ 63 when he requested the $80 withdraw, $ 28 when he requested $ 50 and $ - 7 when he asked for 1 and $ -42 after requesting the withdrawal of the $ 1

 

 

Edited May 1, 2017 by 029b10

[Obviousman]

The article is spot on, but I don't believe the $100 story without proof.

[darkmoonlady]

That is why local Credit Unions are the better choice vs. large corporate banks. They are more likely to be transparent and customer friendly. 

[+and-then]

13 hours ago, Obviousman said:

The article is spot on, but I don't believe the $100 story without proof.

I recall being charged $35 on a couple of occasions when I'd stop at an ATM and grab a quick 20 without checking that it would be covered.  My 20 cost me 55.  Shortly after that, I changed banks and carefully declined "overdraft protection".

[Obviousman]

28 minutes ago, and then said:

I recall being charged $35 on a couple of occasions when I'd stop at an ATM and grab a quick 20 without checking that it would be covered.  My 20 cost me 55.  Shortly after that, I changed banks and carefully declined "overdraft protection".

That is outrageous; don't the US banks have any type of regulation?

That being said, it is not quite the same as the OP's example. In the OP's example, they went to the bank and up to a teller window, not an ATM. If US banks are charging you to simply make a balance enquiry at the window then I'd be advocating armed insurrection against the banks!

[+Noteverythingisaconspiracy]

1 hour ago, and then said:

I recall being charged $35 on a couple of occasions when I'd stop at an ATM and grab a quick 20 without checking that it would be covered.  My 20 cost me 55.  Shortly after that, I changed banks and carefully declined "overdraft protection".

It funny how much can change just by getting a new bank. Some years ago I had a onetime expense of approximately $ 2000 and asked my bank for an overdraft, which they denied, then I contacted another bank and they offered me a $ 10000 overdraft. Not surprisingly I changed bank immediately.

Charging people something like $35 would be a sure way to lose your customers here. One of our largest bank increased their charges significantly and this resulted in 110.000 customers leaving just that year and they have been steadily losing customers eversince.  

Is it difficult to change bank in the US ?

[.ZZ.]

I have overdraft protection from my bank of $500. Just don't let it slide for more than 24 hours or you will be charged $28 per transaction.

[Travelling Man]

18 hours ago, 029b10 said:

Would you believe a true story?

Guy goes into bank and when the teller called him up the window the guy ask what his account balance started off the day at.  The teller tells him it was a $101 dollars that morning.

The guy asks to withdraw a $100 dollars.  The teller looks at his computer screen and replies, sorry there are not enough funds in your account for that transaction.

The guys asks to withdraw $80.  The teller looks at his computer screen and replies, sorry there are not enough funds in your account for that  transaction.

The guy asks to withdraw $50.  The teller looks at his computer screen and replies, sorry there are not enough funds in your account for that transaction.

The guys asks to withdraw a $ 1.   The teller looks at his computer screen and replies, sorry but your account balance is in the negative so if you wouldn't mind,   NEXT

How did the customer with a balance of $ 101 leave the bank without receiving a cent and being overdrawn $ 42?  

The customer had $ 101 in his account, but the bank charged him $3 for balance in inquiry so he only had $ 98 in his account when he for the $100 withdraw. 

After the overdraft fee of $ 35 was assessed, the account balance was $ 63 when he requested the $80 withdraw, $ 28 when he requested $ 50 and $ - 7 when he asked for 1 and $ -42 after requesting the withdrawal of the $ 1

 

S

Quote

 

Uhhhh, no, it isn't a true story.

There are now many banks that charge a $3-5 fee to use a live teller - because online is MUCH more cost effective than having to hire/train/pay a teller. HOWEVER, asking to withdraw money is NOT a legitimate transaction - and is not subject to an overdraft fee - because the customer didn't draft anything against the account. The same goes for all of the other transactions. Even if this was done at an ATM, they would either give him the money AND charge the overdraft fee, or not give him anything and not charge him for it.

Sorry to burst your bubble. I've been involved in banking for years, and my wife is a bank branch manager. This story is bullcrap propaganda from folks that hate banks.

Edited May 2, 2017 by Travelling Man
Double quote errors...

[Imaginarynumber1]

2 hours ago, Obviousman said:

That is outrageous; don't the US banks have any type of regulation?

 

 

 

[029b10]

On 5/1/2017 at 9:04 PM, Travelling Man said:

S

Uhhhh, no, it isn't a true story.

There are now many banks that charge a $3-5 fee to use a live teller - because online is MUCH more cost effective than having to hire/train/pay a teller. HOWEVER, asking to withdraw money is NOT a legitimate transaction - and is not subject to an overdraft fee - because the customer didn't draft anything against the account. The same goes for all of the other transactions. Even if this was done at an ATM, they would either give him the money AND charge the overdraft fee, or not give him anything and not charge him for it.

Sorry to burst your bubble. I've been involved in banking for years, and my wife is a bank branch manager. This story is bullcrap propaganda from folks that hate banks.

 Do ATM's charge for balance inquiries?  Yes they do, not all but some do.  So what is the difference between making a balance inquiry at an ATM and making a balance inquiry from a bank  teller, none. 

Since federal regulations prohibits a consumer from being charged an overdraft fee for ATM or one time debit card transactions unless the consumer opts in or gives affirmative consent for the overdraft services of the institution.   Since Regulation E of the EFT Act allows a institution to charge an overdraft fee upon consumers who specifically opt in to the overdraft services of the bank, the financial institution is not required to pay the overdraft in order to service the consumer who has given their affirmative consent for the banks overdraft service.  

Did you think LOVE ON THE BRAIN was about sex, it's bout that overdraft service.

 

[029b10]

On 5/1/2017 at 7:40 PM, Noteverythingisaconspiracy said:

Is it difficult to change bank in the US ?

LOL, it is easier to check out of the hotel california than close a bank account.

Attack of the ‘zombie’ bank account

Some banks reopen accounts—and impose fees—even after they've been closed

Consumer Reports magazine: August 2012

. 

[Abaddonire]

On 5/3/2017 at 5:36 AM, 029b10 said:

LOL, it is easier to check out of the hotel california than close a bank account.

Attack of the ‘zombie’ bank account

Some banks reopen accounts—and impose fees—even after they've been closed

Consumer Reports magazine: August 2012

. 

That seems like a sharp practice, borderline fraud IMO.

I have only ever operated an overdraft in a business context. Never had a personal one because the associated fees and charges are spectacular.