Economy Biden wants to limit overdraft fees

[KnockoutsGalore]

Why should a bank keep you around if your account is below zero?

I'm not necessarily saying that's wrong. But to point out that we aren't 'helping' one of the most predatory institutions in existence is laughable. What about when banks conveniently choose to charge 3 days worth of spending to your account all at once? You had the money when you went to pay that bill, checked your account to see that there was enough to go put gas in your car, but once the bank process both charges that were 24 hours apart from each other at the same time, you're hit with not one, but two overdraft charges?

Keep shilling for the banking industry if you want, but this is still a good thing for a high number of people.

 

[shockaholic12]

Are tax payers getting a fee from the banks for those $700 million bail outs that came out of these accounts they are charging overdraft fees on?

If we apply the same fee structure they only owe tax payers a gazillion dollars.

 

[KnockoutsGalore]

Are tax payers getting a fee from the banks for those $700 million bail outs that came out of these accounts they are charging overdraft fees on?

If we apply the same fee structure they only owe tax payers a gazillion dollars.

I'd like my Gazillion dollars in 1s, 2s, and 5s, please.

 

[nostradumbass]

With online banking and apps, there's little to no excuse to not be aware of what you have available to spend at any given time.

I'm not suggesting that that the above statement means that nobody should ever have any reason to run into an overdraft situation. I do understand that there are scenarios that arise where you may need to spend money that you don't actually have. I do however feel that most of these can be avoided with budgeting and living within your means. Most of us have an excess of shit we don't need.

A lot of people do it on purpose. Not sure how the math would shake out, but if you have a bill due and you're not getting paid for a few more days, you're better off taking the overdraft fee than getting your power shut and having to reconnect several days later for a fee there, or even worse trying to pay and having a bounced check fee and still getting your power turned off.

The biggest horse shit isn't that they charge a fee to overdraft, it's rearranging the order they post transactions so if you do, they'll post earlier transactions later to hit you for ones that you made when you did have money to cover it.

It would have been better to require them to do the opposite, and make it a one time overdraft fee regardless of how many transactions. This solution is just making mandatory something you could already do, which is opt out of overdraft, and might just get people dinged for something else.

i'm sure that bank executive named his yacht Overdraft because it was no help keeping their accounts negative...

Huh? A boat's draft is the length of the bottom of the boat to the waterline.

Go to a marina sometime, damn near every boat name is some nerdy pun. He didn't name the boat "overdraft fees" or "credit default swap", it's some nerd who picked a name that is both a boating term and a banking term.

 

[JonnyBonesPharmacist]

I'm not necessarily saying that's wrong. But to point out that we aren't 'helping' one of the most predatory institutions in existence is laughable. What about when banks conveniently choose to charge 3 days worth of spending to your account all at once? You had the money when you went to pay that bill, checked your account to see that there was enough to go put gas in your car, but once the bank process both charges that were 24 hours apart from each other at the same time, you're hit with not one, but two overdraft charges?

Keep shilling for the banking industry if you want, but this is still a good thing for a high number of people.

Yeah, keep on teaching people to spend money THEY DONT HAVE. Thats good alright

 

[shockaholic12]

Yeah, keep on teaching people to spend money THEY DONT HAVE. Thats good alright

You're talking to the banks right? Because they are pretty keen on that idea themselves.

 

[Poon Goon]

Why should a bank keep you around if your account is below zero?

You seem to think that banks don't have the option to close accounts that maintain a negative balance. They do have that option and it does get used. However, it's also very profitable for them to keep the account open and keep collecting the high overdraft fees.

 

[Rob Battisti]

I have to read more about this but overdraft fees are one of the most predatory concepts out there, as implemented.

Someone's bank account is overdrawn...meaning they don't have any money. So you charge them even more money for not having money. Sure, there's some need to protect the bank from overdrafts but, realistically, where does a person who's overdrawn get the money to satisfy the fee and whatever it is that they were overdrawn for?

It's one of those things that makes sense if you assume that the target is intentionally acting irresponsibly and doesn't make sense if the target is just a victim of poor circumstances.

I never understood why the transaction just isn’t denied for insufficient funds

 

[Fox by the Sea]

I never understood why the transaction just isn’t denied for insufficient funds

because of the bank's potential future profits

 

[panamaican]

I never understood why the transaction just isn’t denied for insufficient funds

It's a throwback to when people would write checks. The store would get a bad check but they'd be out of the goods so the bank honors the check and then bills the check writer for the problem.

But you're 100% right, they can and should just deny the charge.

 

[JonnyBonesPharmacist]

You seem to think that banks don't have the option to close accounts that maintain a negative balance. They do have that option and it does get used. However, it's also very profitable for them to keep the account open and keep collecting the high overdraft fees.

Yep. And what do you think will happen if you take away the "high overdraft fees"?
But, people still keep over drafting. The banks just gonna keep you around?

 

[irish_thug]

There are still many people out there wondering when their student debt is going to get paid off.

when they make that final payment.

 

[irish_thug]

It's a throwback to when people would write checks. The store would get a bad check but they'd be out of the goods so the bank honors the check and then bills the check writer for the problem.

But you're 100% right, they can and should just deny the charge.

Yes and no, at least in Canada. Here, overdraft protection is something that is enabled on your account to avoid the NSF fees from the chequing days of yore. I think you actually have to request it. The smart way to do it, is to link it to a line of credit through the same financial institution. lower interest, and no fees. Overdraft protection is one of the costliest forms of legal credit.

 

[icemun]

Are tax payers getting a fee from the banks for those $700 million bail outs that came out of these accounts they are charging overdraft fees on?

If we apply the same fee structure they only owe tax payers a gazillion dollars.