Can you afford a 38$ burger?

@saralee1 (1983)
United States
July 12, 2007 12:20am CST
Of course, most people would say "no" nor do they want to pay 38$ for a burger, but that is how some consumers are getting hit by their banks in overdraft fees, according to an MSNBC report. http://redtape.msnbc.com/2007/06/bank_overdraft_.html There is much more, that consumers are not aware of. such as, fees going through immediately, but funds not going through immediately. What gives? well, now there is a place to complain, and have your bank investigated! rest assured, these practices are being investigated. http://www.federalreserve.gov/pubs/complaints/ My personal story? indeed I have been hit by the fees from my bank, without knowledge of a deposit taking 10 days in a calendar month to clear. yes, it was a large deposit, however, the fees accumulated during this 10 day period, would have made it more sensible for me to pay the huge fee at one of those check cashing places, and use cash instead of check! how many other people know someone, or they themselves have fallen prey to their banks? try an estimated 2.7 billion dollars in the US alone, in fees!
3 people like this
8 responses
• United States
12 Jul 07
I was going to cancel my bank acct the other day. I went to mac donald's. I bought my daughter a meal $3.14 and thae same day my friend deposited $120.00 in my acct. Would you believe wamu took it all. The shopping I had done at walmart using my card was not taken off. Some how I was charged non sufficient funds. Etc I lost $120.00 to the fees. Now I went tonight to Ross I left $4.00 in my checking and all little money in the savings. I plan to stop using my debit card and just using the acct to save money. They love to offer free checking because it's not truly free. I called customer service and was not given any refund. They take too long to collect the funds and I forget they are not available.
2 people like this
@lisado (1230)
• United States
12 Jul 07
People who have their identity stolen, I believe, should be protected from those fees, but in most cases, I imagine, it is people not keeping track of how much money they spent and where. My debit card can be used as a credit card, as well, but both will be denied if there isn't money in my account. I check my balanced online often to make sure I am on with the bank. The last time I got an NSF was my fault. I forgot to put a purchase in my register. Why should the bank be held at fault fo that? I know how much money I have and I know that a check written to WalMart might take a few days to clear, so that money isn't really "available" just because my bank balance says it is.
1 person likes this
@saralee1 (1983)
• United States
13 Jul 07
true, lets just blame everyone who trusts a bank then, ok? reason why I say that, is because they in general take a while to deposit your funds, but sure are quick to withdraw it. I deposited a check for 4,000 on the second. funds were supposed to take 6 days to approve? well, that is bank days, not including weekends. It is now the 11th, and the check finally went through. In that period of time, I have had to write checks, and though I am not charged as much as other banks, I still get bit with a fee. I do have the overdraft protection, so for me, it is merely borrowing off the credit card, but at 18$ a pop, per transaction. If I had 4 transactions before this deposit cleared, then it cost me 72.00 just to make the transactions, when the check had already been deposited, but I had to wait for their "policy". to me, that is criminal.
@lisado (1230)
• United States
13 Jul 07
I wasn't trying to pick a fight with you, just showing there is another side to this. I do think that some of the fees (my bank charges $29, but I know some charge as much as $35 each check) are outrageous, and should be capped, but I do see why they charge them. My bank doesn't take that long to credit deposits. Ours are credited immediately, even with larger amounts. We've been with them for several years, but we've never had a problem. All banks have their own restrictions, which you said that you knew about in advance. Should you have to wait for your money? No, but since that is their policy there isn't much you can do about it except change banks. The bank that we had before this one would allow only $250 of a deposit that size available immediately and then the rest was available (as long as the check cleared) in 10 days. If it was drawn off of the same bank it would be available immediately, since they could debit the account right away. We were able to call a conference call with the other bank if we needed more than $250 right away(usually 3-4 days later) to see if the check cleared or not. They didn't like to do it that way, but they would. They could over-ride the computer's hold on the money once the other bank gave the okay that it had cleared. Each bank has their own set of rules. This was one of the reasons we changed banks because we live paycheck to paycheck and couldn't always wait for larger deposits to clear. If the check was drawn off of a local bank we'd just take it to the bank it was drawn off of to cash it immediately and then deposit the cash into our account. Not always convenient, but neither was waiting 10 days for our money. How do they know that the check you received wasn't going to bounce? It would be easy to spend the money and then if the check bounced the bank would be left holding the bag. Yeah, they charge fees, but there are people out there who don't care and won't pay them. I'm not saying you wouldn't pay them, but how does the bank know that? It takes you bank a couple of days to clear a check to someone else, so it takes a few days for your bank to clear one to you, as well.
1 person likes this
@saralee1 (1983)
• United States
14 Jul 07
Ok, I am not trying to pick a fight either (hee hee) just stating the facts.(as I know them.) I doubt I'd ever change banks, I go through Credit Union. 18$ compared to most banks isn't as bad. I'd never do business with a bank that charged 35$ per check that did not clear. that is just plain robbery. also, if you look at the places that cash your check right away for a fee, they usually call the bank to make sure the check will clear. also, if you have done business with them in the past, oftentimes they don't even check. however, when dealing with a personal bank, if you have done business with them for years, why would they still make you wait an extended period? I actually was fortunate, because my bank held the payments of certain checks until my larger check had cleared. Not everyone is as fortunate though. I am also fortunate because I asked for overdraft protection immediately when I opened my bank account since I understand in a way how banks operate with withholding funds until they clear. the best advice I can give? if you do not want fees, don't spend it until you know it has cleared. even checking your funds via the machine is not an indicator to if your funds have cleared the bank yet, as I have noticed. the day after my deposit, my statement read that my funds had been deposited, even though I was to wait a certain amount of time.
@emeraldisle (13145)
• United States
14 Jul 07
I wish I'd known about this years ago. I had a bad experience with a bank. They held all deposits, even cash ones for 3 business days and didn't bother to tell you. It was one of those really small fine print areas in the forms. The ones where you need a magnifying glass to see. The check ones yes you could see that without a problem but the cash ones was buried. I deposited Cash on Friday, did my shopping and paid bills over the weekend and of course those checks bounced. When the Cash did clear they took all their fees which meant when the companies tried to redeposit the checks again they bounced and gave another set of fees. Companies can keep redepositing automatically 3 times and then have to manually do it after that and with each one the bank can take a fee. Nice huh? So that check for say $5 could cost you as much as a $110 (at $35 a time) in bank fees before you even know it's bounced. Let alone the fee to the company you wrote it to. I was more then a little ticked when this happened and I let them know it. I'm with a pretty good bank now. Reasonable fees although they do hold on to checks for a while but they let you know that and how long. They even warn you not to try to use the cash until the check has cleared. Cash though is deposited immediately. What I liked was it only cost me a $1 to open a savings account and the fact that they are open 7 days a week (yes all 7 and even open from 7:30am to 8pm 6 of those days). The thing is though there are a lot of banks out there that seem to love to gouge people for fees any way they can.
@saralee1 (1983)
• United States
30 Jul 07
Yes, the banks are a bit "mad" I think. makes you wonder how they did it back in the days?
@Foxxee (3653)
• United States
13 Jul 07
I don't know, I never have had a problem with the banks I have used. I have only used two in my lifetime and the first one, I changed because I moved to another state. The one I use now works wonders for me. I have never had a problem with them, but my mother uses the same bank and has all kinds of problems. I just think it's all how the person manages their transactions. Sometimes people make mistakes and then blame the bank. I know my mom would always forget to take out her ATM fees and then she would some how screw everything else up. I'm very careful with everything and I always keep statements around for at least a year and I even question everything if I see something that is odd. I know banks have been known to make mistakes, but they usually correct it. If a bank ever screws me over, I would screw them right back. LOL!
1 person likes this
@saralee1 (1983)
• United States
14 Jul 07
There was one bank, I won't mention it here, since it is a fairly large bank, so B of A, who would charge 6$ to have a checking account, 5$ to have a savings account, 5$ if you went to the teller to cash a check, and other fees. this isn't good for the struggling student who may get hit with their extraordinary high fees of 35$ per check, if something goes wrong! plus, it can be a snowball effect. the student has bad debt, however still has to live, unfortunately on a shoestring budget. I'd suggest strictly cash.
@Lissaboo (43)
• United States
13 Jul 07
Oh my gosh.Well that's good that there is a place to complain, there needs to be.
1 person likes this
@carmelanirel (20979)
• United States
12 Jul 07
I wish I knew about this much sooner.. Not only do we have over draft but my husband has most of his check automatically deposited every pay day.. A few weeks ago, our transmission went out, but because he got a bonus for overtime we were not worried.. But guess what? The bank took everything..
@coolseeds (3921)
• United States
12 Jul 07
I don't trust business's or their employees. I have several stories to explain why but I will spare everyone. I have never written a check out of my checking account in the 10 years + nor did I have any checks printed. They wanted to give me an interest bearing checking account but a savings account without any interest. So I turned it into an interest bearing savings account. LOL
1 person likes this
• United States
26 Jul 07
i knew when they put so many check cashing and cash advance places in sucha small city as our..so close together there must be big money in these places..like some of the old savings and loans..but these places take advantage of the poor and people who do not manage their money properly..the old pawn shops were not better in their interest that they charged..but people should be more alert to how much this money is costing them. The commericals today make it look like you are a fool if you don't use a debit card or a creid card..you who use cash and pay off their balances with no interest incurred in the first thirty days are looked upon in the banking industry as "deadbeats" as they can't make the high interest off of you...overdrafts are like manna from heaven for the banks..like love to see a lot of bounced checks..and house and land foreclosures? well..good money for them..sell the land over and lover again...too bad for the people who don't figure on the true cost of this easy money.