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108 Comments
- Frankzulla, on 11/13/2009, -1/+55Wow, color me impressed.
- costumemaker, on 11/12/2009, -8/+52OK, I hate to sound like a conspiracy theorist, but there is something here I don't trust and I can't put my finger on it.
I never, ever would have thought the FED would have done something for consumer protection rather than for bank profits. I think that because it is so out of place, it is making my head spin trying to figure out wtf this is all about.
They make BILLIONS literally every year off of overdraft charges from consumers.. very odd. - newsboys, on 11/13/2009, -2/+38Wow - seriously? That happens in the States? I never knew such douche-baggery existed since I live in Canada, and if I ever try and purchase something with my debit card without having enough funds, it just gets rejected...
Welcome to the club, America. - Dustin00, on 11/13/2009, -3/+35CHANGE, BABY!
(also: quit using banks -- switch to a CREDIT UNION!) - harvinator24, on 11/13/2009, -0/+28The gentleman is referring to the FEDeral Reserve not the FEDeral government. Oddly most people do not realize that the federal reserve is not part of the federal government.
I totally agree with your that sometimes the federal gov does not always do evil, but since the creation of the federal reserve they have done nothing but sour this country and transfer money from the poor and middle class to the wealthy bankers. - siszam, on 11/13/2009, -1/+26Banks will start charging fees for checking and other things. They will find a way to make up for the loss. Banks and other businesses do conspire to part you from your money.
- logic6, on 11/13/2009, -7/+30Finally, my vote for Obama is paying off.
Banking fees are a regressive tax. - spyd3rweb, on 11/13/2009, -2/+22Well now comes the 'you can't get an account unless you opt-in', or 'you have to pay a fee to remain opted-out', bullcrap. I'd totally expect that.
- JediCorran, on 11/13/2009, -1/+19about ***** time. that crap has cost me hundreds.
- whirlingderv, on 11/13/2009, -2/+20I'd bet that the Fed is trying to build up some good karma to try and silence the cries to shut the whole damn monster down.
- UbIwerks, on 11/13/2009, -0/+16Just moved to California from Canada. The first month I was down, I wasn't aware of these 'fees' either. I spent about 25 dollars past my limit with 9 transactions (2 bucks at taco bell, parking meter, etc...). Check my account a couple days later NINE $35 dollar overdraft charges.
Thanks Bank of America! Way to kick me while I'm down. - nerddtvg, on 11/13/2009, -1/+16Awesome. Simply awesome.
- jeffiek, on 11/13/2009, -1/+15The police also come when you don't call - and confiscate your property
http://digg.com/people/WTF_Cops_Legally_Stealing_P ...
They also come when you don't call and throw your ass in jail for pot.
The army also kills when you don't want them to - Iraq and Afganistan. And, if you're from my generation, Vietnam.
Refund on your taxes????? Big deal. You're ga-ga over the chump change you get and ignore the big bucks you sent? Or don't you understand that what "withholding" means?
It's a package deal. You don't get to pick and choose. Counting assets and ignoring liabilities is just plain dishonest. - EddiePotato, on 11/13/2009, -0/+10I'm with you except for the tax refund thing. A refund on your tax return is nothing but the government paying you back money it borrowed from you over the past year, interest free.
- tmonsta1, on 11/13/2009, -3/+13and what happens when you deposit money into your account, and the bank just magically decides to hold the money?
or they decide to clear some of it, and not all of it...
it's not as simple an issue as you'd like to believe
I have a friend who got a bonus check, and when he paid off his credit cards with it, they tried to slap him with over $200 in overdraft fees, because they only cleared a portion of the deposit... and held the rest, and it just happens that they cleared the big checks first so they could bounce as many checks as possible...
they wouldn't let him spend his own money
still want to insist it's simple adding and subtracting? - seltaeb4, on 11/13/2009, -8/+17That's why I've never understood the ongoing Republican fellation of business.
Business interests screw us at least twice as hard as government does, but they'll toss rose petals in the path of the former. - vicsvenge, on 11/13/2009, -1/+10That's so great that the Fed is doing this. It's an incredibly unfair fee for most people. Even though I use a Credit Union many ATMs are out of my network so they charge me anyway.
I am curious how they plan on funding ATMs though if there's no incentive to do it. Maybe banks will charge the financial institutions a small fee per transaction or something. - snafflepaffle, on 11/13/2009, -0/+9Wouldn't it be nice if the bank just didn't allow you to spend money you don't have....
Seems simple to me. - everybodynaked, on 11/13/2009, -0/+8What the??
"The group also contends that most banks multiply overdraft fees by manipulating their debit-clearing systems so that high-dollar transactions are debited first each day." - niradg, on 11/13/2009, -0/+7The rumor is that they did this because Democrats in Congress were threatening to radically restrict the power of the fed if they didn't start doing things that were in the best interest of consumers and not banks.
- kashk5, on 11/13/2009, -0/+7Yea, that's really ***** up isn't it?
- Valyn, on 11/13/2009, -1/+8The only thing I can think of (but i have not been watching the news) Has Ron Paul's Fed bill been voted on yet?
- UbIwerks, on 11/13/2009, -0/+6I already talked to 4 different reps. I was able to get..... one taken off. :(
- kashk5, on 11/13/2009, -1/+7I hate bank holds. Completely arbitrary and such a pain in the ass.
- tcheck, on 11/13/2009, -0/+6I have a plan that transfers money from my savings to my checking if I overdraft, but it also charges me a fee. This fee supposedly would cost less than if I didn't have the plan. Now, it seems like it'd be better if I got rid of it.
- Gareth321, on 11/13/2009, -0/+6Agreed. This just doesn't add up.
- Samueul, on 11/13/2009, -0/+4You have to REALLY search for that find though... I've yet to come across a bank in 15 years that beat my credit union on anything (customer service, rates, fees, services, etc.).
- ClarkWells, on 11/13/2009, -0/+4Look. Banks are completely evil in everyway. Of course you are right to be worried. They WILL find a way to get the money from you. If you aren't paying them overdraft charges, then they will charge you for something else. Almost $22 BILLION in overdraft charges in the first 6 months! Absolutely unbelievable.
People are always talking about how much money all these Oil Companies are making.... Let's talk about banks. - Jonjonr6, on 11/13/2009, -0/+4Wachovia has even overdraft my account when I had the funds to cover the charge!
This week, my balance was $24 (didn't know I let it get that low).
I had lunch on Monday for $7.50
The transaction was cleared on Tuesday.
I went to the store for a some food on Tuesday night and charge $25.
They charged me an overdraft before they even cleared the $25.
Then they charged me another overdraft once the $25 cleared.
Which it didn't clear until today, despite my direct deposit of my paycheck.
I will post this later. Hopefully it will make front page. - Averness, on 11/13/2009, -0/+4It's the fee that this is all about. Overdraft Protection is actually overdraft protection screwing you. Always say no to overdraft protection. This law ensures that you at least get the choice to opt out.
If you didn't have enough in the bank and stopped for gas, and milk, and some groceries, they charge you an overdraft protection fee of $30-$35 three times, just like that. The next day you find you bank account minus $105, but they transferred the cost of your groceries from your savings account. That's the supposed service they're using to rip everyone off, and now it's finally over. - Gareth321, on 11/13/2009, -0/+4It appears the rule only applies to overdraught fees. Fees for the use of each machine are still allowed.
- snafflepaffle, on 11/13/2009, -0/+4I don't get why the bank has to allow you to spend more money than you have in the first place. Even the most careful people ***** every once in a while. Seems like the bank could just say "nope, you don't have enough money to buy that" instead of "we're going to loan you the money without letting you know that you're over your balance and charge you an outrageous fee for doing it."
- specialbuddy1, on 11/13/2009, -1/+4I had a bank that had $300 overdraft protection. They even added that number to my account balance so when I checked my balance it would say $450 instead of $150, the actual amount I had. I was going to close my account and spend the rest of the money but didn't know about the overdraft protection. I ended up having 6, $38 dollar overdraft charges and one of the items was for a beverage of $1.79. I managed to get half of the charges dropped and closed the account right after that. They insisted that "every bank" did this.
- JessterKing, on 11/13/2009, -1/+4this is what happens when the government isn't filled by career politicians, Instead of trying to keep the lobbyists happy they are trying to make the people happy.
P.S. Yes its still a ***** up system, but its trying at least a little bit. - deltron0, on 11/13/2009, -1/+4Long overdue.
- Niacin, on 11/13/2009, -3/+6That's funny, I don't recall the "Rein in obscene banking fines and penalties" pledge. I do remember the other dozen promises he made that he's broken, though!
Obama and the current-day Republicans are all indebted to Wall Street, the Federal Reserve, and foreign conglomerates in the interest of the "economy". By "economy" I mean "making the same handful of people wealthy by pushing the consumers to buy their crap." This is just another way to keep the King of the Hill (The Federal Reserve) on top of the pack.
I hope you can find the gall to vote for another pro-Federal Reserve candidate in 2012; you'd be either the bravest individual ever, or the dumbest. - ugacrew, on 11/13/2009, -0/+3How would this curb personal responsibility? The point of this measure is if you DON'T have the funds in your account your card will be DECLINED at the point of purchase. You end up getting embarrassed at the check out line but your checking account won't be put into the red with an exorbitant fee. On the other hand if you were allowed to buy the item but wasn't assessed a fee then I could see your point. However this isn't the case. I see this measure returning us to an earlier point in time when banks actually didn't let you go into the red. At least that's what my bank did over 10 years ago.
- Stingwolf, on 11/13/2009, -0/+3I would think he would have something better to do with his life than that. It says nothing about his integrity.
- tmonsta1, on 11/13/2009, -1/+3who's living paycheck to paycheck?
you have a bonus that gets direct deposited... you decide to pay off credit cards with it... does this sound financially unresponsible to you?
why do they show it in the account balance, but don't allow you to spend it... because that's what happened
and then they put an arbitrary spending limit... oh we know you have $7000 in the account, but we only allow you to spend $5000 at a time, so we went ahead and bounced all the other checks
they did refund all of the overdraft fees, but the fact that they tried to charge them in the first place was BS. Why would you defend this? - WilliamAdama, on 11/13/2009, -1/+3dude, Canada has overdraft too but the difference is that the fees are not retardedly high and also you don't pay for it unless you actually go into overdraft. I have it with my TD account.
- sh0em0nkey, on 11/13/2009, -2/+4About ***** time. When I went out in the world on my own, my bank just about cut the legs from under me. I was younger, and wasn't the greatest at managing money. But oh man, did they take advantage of that.
"The group also contends that most banks multiply overdraft fees by manipulating their debit-clearing systems so that high-dollar transactions are debited first each day." - The last sentence in this article is exactly what they would do to me. They would calculate my biggest purchases first and the smallest ones last. The thing is, the bigger ones would put me a few dollars over, and then I would have a few small charges (most of the time under $5), and they would charge me $33 per charge. I've paid $34.07 for a McDonalds double cheeseburger.
All in all, some months were tough, and they made it tougher by charging me over $150 for less than $20 (in total overdrawn). I'm glad they are finally doing something about it. - logic6, on 11/13/2009, -1/+3I remember hearing a banking industry lobbyist on Meet the Press arguing that they clear the largest charges first because "Customers WANT their most important payments to be process first because rent is more important than the smaller charges..." That was the most ridiculous thing I'd ever heard on Meet the Press.
- johndavidjack, on 11/13/2009, -0/+2Never said I wasn't an idiot, ;-)
But I agree. I wasn't really displeased with the banks, considering they do hold my money, and I do collect interest. I'll probably make up the overdraft fee in a few years anyway, so it was kind of a kick in the nuts to pay attention a little more often... - cuervoman914, on 11/13/2009, -0/+2ah *****, im drunk
- Barackalypse, on 11/13/2009, -3/+5They give failed investment firms and banks $800 billion. You get a devalued dollar and no overdraft fees.
- concertina, on 11/13/2009, -0/+2Hey, that's funny. I remember way back in the day when banks didn't charge fees for using another banks' ATM. In fact, they also didn't charge for visiting a teller instead of using the ATM like most banks do these days, or for any of a million little hidden charges that seem to exist now.
And yet, somehow they managed to stay in business for years operating in that fashion, even with no incentive to supply ATMs other than the reduced labor costs resulting from fewer tellers. I wonder what happened?
Oh yeah, that's right. They figured out that the public would just TAKE IT UP THE ASS. And that congress could be paid to make sure that nothing would be done about it. - fant0m, on 11/13/2009, -0/+2You do realize that when you swipe your card at the gas station, the gas station only retains a dollar off of your debit card. That's because they don't know how much gas you are going to pump (when you pay at the pump).
This means that your movie date from the previous day, the dinner you bought 2 days prior, and the groceries you bought that day, aren't totaled into your "available" balance.
The vendors with whom you've done business with decide when they take your transactions "to the bank." This means that they decide when they are going to report your transaction, thus, they decide when you have your money withdrawn. While I agree, no one should go buy a $600 TV when they only have $400 in your account - but with every day stress, issues, and events, it's hard to keep track (in your head) how much you paid for dinner previously. Not to mention the tip - that's a second transaction altogether. You go check your balance online, or at the ATM, and it won't show you the funds you had deducted, unless the merchant claims those funds with the bank.
Very easy is it to get an overdraft fee for something as simple as that. Oh, yeah - that $4 tip you gave the waiter/waitress... that's an ADDITIONAL overdraft fee - because the restaurant separates that transaction from the initial purchase (of the meal).
Now you are looking at -$79 (one $39 NSF for the meal, and one $39 NSF for the tip) in your account because you made a simple mistake.
You didn't intend to, but the bank doesn't give a *****. It's your pimp, and you're it's bitch. - erix84, on 11/13/2009, -0/+2My bank gives me one free "freebie" overdraft waiver a year that accumulate if I don't use them. Have had my account for 2 years now, have 2 waivers. They also offer overdraft protection in the form of a credit card that your checking will draw from if you go over, but I apparently didn't have enough "credit" for it... everyone I know with "good credit" has a ton of debt, meanwhile I have none. Go figure.
- newsboys, on 11/14/2009, -0/+1Fees are just as high, actually - $35 dollars a pop. It's not the same though - if you go to buy something at a store with your debit card and you don't have enough funds, you will *never* get that fine for *trying* to make the purchase - it just won't go through. However, if you have a monthly automatic withdrawal set up from your account and you don't have overdraft and don't have enough funds, the withdrawal will not go through and you will be hit with the $35 dollar insufficient funds fee.
It's not the same as what happens in the States, where one can get nailed with overdraft for making a *purchase* without having the funds in their account. -
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