another way to shaft those who need money the most
over drawn account
overdraft
rich getting richer and poor getting poorer
Just one more way.....
By maildumpster
@maildumpster (3815)
United States
August 30, 2007 3:19pm CST
that low income people get screwed.
Bank overdraft fees. Lets face it they are designed to hurt "poor" people. Rich people don't have to worry about overdrawing their account. They also deny people overdraft protection ... and most people with higher income have good credit so they qualify for overdraft protection.
Just one more way that the rich get richer and the poor get poorer!!
It disgusts me. God forbid you make an error in subtraction or something gets forgotten in your check register and that is it you are screwed. This just happened to me this week. I checked my account balance on Sunday night and deducted what I still had outstanding. There was still money in there. Next thing I know I check my account yesterday and they overdrew my account 5 times!! 5 times at $30 a pop! Turned out my hubby used the ATM without remembering to tell me. Thing is if they had processed the smaller amounts first they would have only overdrawn the account once!! Then with a direct deposit going in overnight they held the deposit last night and processed three more things before the deposit.
Those jerks took over $200 from us.
Well no more we opened an account with another bank that has a better system (almost real time updating of their online banking system so if I use my card today it shows up today NOT in a few days that sometimes happened with the other bank!).
They lose my money!!
7 people like this
15 responses
@applsofgld (2506)
• United States
31 Aug 07
It is frustrating and not fair, I agree with you there. Just like with credit card payments, if you don't get a payment in on time they add a charge, if that charge puts you over the limit, then another charge, it never ends, for us working class citizens we have a struggle to get ahead and stay ahead. You are so right, the rich don't have these worries, and I think they are the ones who make the rules up for the rest of us. Hope you got things fixed with the bank and everything is ok now.
1 person likes this
@maildumpster (3815)
• United States
31 Aug 07
Nope they would only refund one of 7 charges as a courtesy. They can stick their courtesy where the sun don't shine!
We opened an account in another bank and as soon as the direct deposit of hubby's pay has transferred there; I am closing the account at this bank.
You know what, we just bought a new car. This is in a way good. We will start fresh so to speak.
@eanna13 (133)
• United States
31 Aug 07
thank goodness the credit union where I work isn't like that. I've had that happen several times with the old bank we use to use. direct deposit was suppose to be credited to the account first thing on wednesdays. they would post check before anything and cause us to blow it for the next few weeks. The credit union I'm using now will call me first if anything goes wrong! LOVE THEM!!!
1 person likes this
@Ravenladyj (22902)
• United States
31 Aug 07
low income isnt entitled to Overdraft Protection?? seriously? Damn thats nuts!! I know my bank (in Canada) gave me the option BUT I have to admit that I dont know if ALL banks (different banks I mean) are all like that AND my family has banked with the bank I use for over 30 yrs now and I've been a client for at least 10 myself so that could be the reason....
Damn they really stiff the low income and below poverty ppl every chance they get eh! Its harsh back home but I dont think its AS harsh, then again it could vary from province to province for all I know and even city to city I guess too....
1 person likes this
@maildumpster (3815)
• United States
31 Aug 07
It isn't so much that low income isn't entitled but rather it works like this:
some banks only source of over draft protection is to link your checking to a savings account. They then transfer the money from the savings to checking if you over draw. If you are REALLY LOW income you usually don't have much in savings if anything at all. PLUS they usually charge you for moving your money.
OR - they have you apply for an over draft line of credit. They will credit you the over drawn amount BUT they charge a fee AND interest for doing so. Many people with low income don't have the greatest credit so it is hard to get approved.
@uath13 (8192)
• United States
19 Dec 07
Eanna & I have gone overdrawn be 5 cents before. 5 bloody cents! They then charged us $20 for the overdraft charge then another $5 a day. By the time they sent us a notice several days later we'd already had our checks deposited & sent off several bill payments which then also bounced because of what they'd charged us. All over 5 stupid little cents!!!! Totally free checking my a%$...
Their getting to use my money without interest & their pulling stuff like this? I'd love to go in there & shoot that nickel at them.
1 person likes this
@mssnow (9484)
• United States
31 Aug 07
I know how you feel, that same thing happened to me once. They take the higher withdrawel first so they can charge more. I have an account now where they do give one over draft forgiveness. I don't write checks anymore I just keep track of what i take out in debit cards. I also have a paypal account which helps tremendesly because once your out of money you can't take any more out so there is no worries of being overdrawn. I use that as much as I can.
1 person likes this
@Seaclans (215)
• United States
30 Aug 07
It is a real problem, I'm on a fixed income, and only get paid on the first. So, recently I came up over drawn by about two dollars and it turned out that my "bargain" version of an account charges a five dollar fee for every day it is overdrawn instead of a flat per transaction fee. This time I was able to get it straightened out, they refunded the money, but now I am very careful, I only get about $200 per month once I pay rent, so a five dollar fee for every day could quickly become most of my income for the next month.
With the way our banks allow overdrafts when using check cards the fees are just wrong. I have a friend that lived in Canada and there, the banks cannot cause you to be overdrawn when using a check card. It simply will not approve a transaction for more money than you have. I wish this policy would be put in place in the USA.
Another possibility is that instead of overdraft fees, their could be an automatic short term loan, that way the banks can still make their money from interest but no huge penalties for going a few dollars over balance.
1 person likes this
@maildumpster (3815)
• United States
31 Aug 07
Some banks do have that they call it some form of Overdraft Protection. Problem is you have to qualify. So if you are low income and your credit isn't perfect; you won't qualify.
@rogue13xmen13 (14402)
• United States
31 Aug 07
I can relate, I got screwed by my bank just recently, and now I have to switch banks, again.
@GardenGerty (169406)
• United States
31 Aug 07
Been there, done that. I agree, the bank that works with you is the one that should get your business. I know lots of people so poor that they do not use a bank at all, everything is cash or money orders, because they have been accidentally screwed up one too many times. It takes a long time to recover from those happenings. I will not use a debit card, I am nervous because my husband got one, and will use it. He was the problem with out credit card, and now he has a debit card. HELP!
@reinydawn (11642)
• United States
31 Aug 07
My son just had a vew overdrafts recently - he wasn't working for a while and things were tighter than he thought. He was going to call the main office and ask them to waive some of the fees because we've been banking with them for about 20 years. I told him to call the local branch (where I used to work and the manager knows me, my sister also worked there for a while so they really know the whole family). He called and talked to the manager and she did waive some of the fees for him. That doesn't always happen though... It can get pretty disheartening...
@sunshinecup (7871)
•
31 Aug 07
Oh yes, our bank pulls the fees out the second they are made. I can make a purchase at Wally world and by the time I get home and pull my acount up online, it's been withdrawn. LOVE IT!!
You are so right about the banks taking advantage of us with those over draft fees, it's a joke.
@suspenseful (40192)
• Canada
4 Jan 08
I found that happened with my regular bank. I deposited money and then the next day, went and bought something hoping that they would consider that I had put money in the bank, but they had to record the withdrawals first that came in later. Now I have to have some extra money in stock and do not get under $10. I found that I do not make enough money for over draft protection either.
Oh I hope you gave your husband hell for not telling you and maybe you should get an account of your own. It's safer.
@filmbuff (2909)
• United States
2 Sep 07
Banks are malicious that way. They make the majority of their money on fee's and do everything in their power (it seems) to maximize someone being charged one, or many as in your case.
They are really unforgiving. If you make a slight error in math they hold you accountable and tack on fee's to no end. However if they mess up, all they will do is fix the problem and you usually have to go through bloody hell to get them to a) admit they made a mistake. Once they admit it, they are good about fixing it. It's too bad we can't charge them a $30 "you screwed up" fee like they do us.
With that out of my system I will say this: The fee's charged hurt poor people prbably the most, but a surprising amount of well-off and outright rich people overdraw their accounts as well.
A lot of it has to do with responsibility, another larger factor is that someone making a good wage are not too upset about an overdraft fee (they can more than absorb) with their next payroll check if means they can take home their new toy today.
@HomeCooked (94)
• United States
31 Aug 07
I agree with you, I changed banks for that same reason!
My banch charged my 53 bucks for a 8 cent overdraft!!
I think once you belong to a bank for long enough they should give you grace period of some kind!!
They can create a computer programm that can read an 8 cent overdraft from a 30 dollar one.
Its so true, Paris Hilton for example, she has a line of purses and a purfume, she made millions last year, all because she could pay others to do the work for her.
I just told my husband last night, money makes money, as he commented that Rob Zombie has all the money he needs but loves horror nd makes movies for fun, and makes more money!
No fair I tell you no fair!
1 person likes this
@pendragon (3348)
• United States
31 Aug 07
I am sitting here shaking my head, that happened to us last month.They get ya coming and going, they know you don't have it to begin with, so they take more and more.Makes no sense, while those with more get overdraft protectiion!
