Overdraft fees

[hamchan]

Oh, if the bank were to hit me with a fee for something, I'd certainly call and ask to have it waived. If they said yes, great. If they said no, I'd pay it because the mistake was my fault. I'd have no problem taking responsibility for that.

My point is that these fees aren't a surprise. They clearly state them when you sign up for the account. They tell you what actions on your part will trigger them. If you then proceed to do things that trigger those fees, you can't turn around and complain about the bank being unfair or greedy. It isn't their fault. They gave you fair warning.

It reminds me of a friend who used to get all angry every month when his landlord charged him a late fee for rent. Obviously, it wouldn't have happened if he didn't pay his rent late, so how was that the landlord's fault?

Except that BoA specifically has been know to do things that ARE unfair and greedy. And have been sued over it. But if we're talking about something fairly straightforward and you really did get charged for something that is your mistake, I don't complain about it. I find someone who won't charge me for making mistakes in the first place. It's not a surprise when the check cashing place charges you 10% to cash you check either, but that doesn't mean you "deserve" it, or that it's a good idea.

[JoeP]

Does anyone know: is there an actual cost incurred by banks when processing a NSF situation? I would imagine there would have to be some sort of NSF return code sent back to the originating financial institution, and calculations would need to be performed on both ends.

Maybe in the old days, this required an actual person to sit down in front of a green screen and knuckle in some data, but with today's automation, is charging NFS fees simply a holdover because banks had relied upon those fees in the past and don't want to give them up (even if the actual burden is close to zero)?

[BuckyBadger]

Except that BoA specifically has been know to do things that ARE unfair and greedy. And have been sued over it. But if we're talking about something fairly straightforward and you really did get charged for something that is your mistake, I don't complain about it. I find someone who won't charge me for making mistakes in the first place. It's not a surprise when the check cashing place charges you 10% to cash you check either, but that doesn't mean you "deserve" it, or that it's a good idea.

If there is an example of an undisclosed fee that someone got charged for for no cause, then that is of course wrong. Being greedy, however, isn't illegal. It's obnoxious, but it's not illegal. It's capitalism. And if you annoy enough people they'll take their business elsewhere. Wells Fargo has not annoyed me enough that I plan on taking my business elsewhere.

If the check cashing place charges 10% then people shouldn't go there? Go to the bank or credit union where you have your accounts and deposit the check. That 10% seems like a "convenience tax" to me.

[hamchan]

BoA was the one that got hit with a lawsuit for reordering deposits and debits in order to maximize the fees they could take. They did it to me once and I closed the account immediately. Wells Fargo never pulled a stunt like that, though I had to watch my account carefully because at least once a year they would make a mistake that cost me money somehow.

People use check cashing establishments usually because they don't have a bank account. My other big problem with the greedy practices of banks and payday loan outfits is that they disproportionately effect people with lower incomes. I'd like to see more regulation.

[bjl584]

People use check cashing establishments usually because they don't have a bank account. My other big problem with the greedy practices of banks and payday loan outfits is that they disproportionately effect people with lower incomes. I'd like to see more regulation.

Walmart will cash a paycheck for $3. A much better option than a payday lender or check cashing establishment.

http://www.walmart.com/cp/Check-Cashing/632047

[disneysteve]

My other big problem with the greedy practices of banks and payday loan outfits is that they disproportionately effect people with lower incomes. I'd like to see more regulation.

I agree that this is a problem. Payday lenders prey on the poor. You'll never find one in a good neighborhood. They are all in the poorer neighborhoods. I think even when dealing with folks who are a higher credit risk, it should be illegal to charge 300% interest for anything.

[hamchan]

Walmart will cash a paycheck for $3. A much better option than a payday lender or check cashing establishment.


http://www.walmart.com/cp/Check-Cashing/632047

That's fine if you are close to a Wal-Mart. I live in the inner city. No Wal-Marts anywhere close to here. Lots of check cashing places though. If a bank account is not an option for whatever reason, then it would be fairly inconvenient and time consuming to cash a check otherwise.

I have, in the past, when I wasn't using a bank, just taken the check to a branch of the bank it was drawn from to cash it. Usually there are no fees, but when there are they are nominal. But again, this can be fairly time consuming.

I do think there is a need for short term loan products and check cashing, but the rates they charge are predatory and ridiculous.