As one door is closed to them, unethical banks will surely find another. That's what I shared with my senators and representatives when writing to them today. I've been using banking cards for a very long time. And never has a bankcard allowed me to get money I did not have.
Well, those days are apparently over. My teen-aged son used his new card from his new bank account to withdraw money. When he accidentally attempted to withdraw more money than was in his checking account (but rather in his savings), the machine gave him money - and not just once.
The bank then charged him over and over before letting him know that he was overdrawn.
My son and I visited the bank. Do you think they were willing to give him his money back or do a simple transfer of funds to rectify the situation? They told us it would nearly take "an act of God" to help us out because they have their rules and processes and customers need to keep up with the changes, including the role credit card companies now play at bank machines that are out of bank control. I asked her who received the penalty money. "We did," she said. "Then you're in the loop" I replied. "And you're responsible." I then explained that my family has rules and processes too that include a bank operating with integrity if they are going to retain our business.
My son was given half of his money back, but they are insisting upon keeping the rest. We'll see.
If I were you I'd watch my back. They're obviously now trying to get the money from the little guys in new ways - even teenagers -- money their fat cats absconded with both before and after the bailouts. My bet is that banks like this are hoping that a lot of people low on their luck will be overdrawing and that by letting them do so, they'll be able to put these people further into debt with penalties. Then there are elderly or infirm people who may not keep their own records and don't know which account has money.
It's a slick and sick move. People assume they won't be allowed to overdraw - that the machine will refuse to comply. And it's that assumption, common and reasonable, that allow some banks and credit card companies to quietly steal from their customers.
So when your son or daughter opens a bank account and they happily give him or her a card, be wary. And if you assume that your bank is going to stop you from accidentally overdrawing from the wrong account or one without the amount of money requested, think again. Your bank might be counting on that assumption. If so, they don't care if you're a kid, if you had money to cover it in their bank or that you've been a great customer. You lose. They win. So watch your back.
Dr. Reardon also blogs at bardscove.
Follow Kathleen Reardon on Twitter: www.twitter.com/comebackskid
Instead, the Admin is covering its backside with deceitful and self-congratulatory talk about winning on "clarity and transparency."
Yes, now the banks will be required to tell you in a plain language ---"dear customer, your interest rates has been raised to 40%. Thank you for your business. "
Who is schoolin' who?
See, the banks whined to congress that "credit unions are unfair, they don't have to pay stockholders a dividend," and got congress to set strict rules about who can be in credit unions. If a credit union gets too successful the banks take them to court and allege that the CU has too many members, too many classes of members, etc.
If you want to break the banks, write your congressman/woman and ask that restrictions on credit union membership be repealed.
While you are at it, ask that insurance cooperatives be made legal again too.
We have been hit with massive obligations for their debt. we are taxed with no representation. Welcome to fascistin America. The credit card bill is the least of your worries dearie the arrows are squarely in our backs and we are bleeding to death.
If you use a chain bank, you're going to get caught with this stuff.
I went with him to the bank to ask that they refund to his account (assuming a bank error) or that we review the ATM security tapes from that time to see who used his ATM card (assuming some sort of fraud). Although we provided documentation about his whereabouts, etc. they said that they would not refund his account. However, they would be happy to review the security tapes...for a fee of one hundred dollars.
Nice.
When enough people get burned by this kind of crappy scheme (and in the hard times coming they will) then it will fuel enough public outrage to make legislators crack down hard on the greedy bastards.
You can afford to treat your less fortunate customers like crap in good times, but when the majority of the country is suffering, it is a suicidal move. I actually am kind of glad this is happening because the corporate giants have gotten too influential for the good of this country, and they need to be slapped down.
Obama is asking all federal workers for ideas on improving America!
This is EXACTLY the right thing to do!
Now lets ask some CAR DEALERS trying to get Loans from Wall Street what to do!
Lets ask some Students trying to get Loans from Wall Street what to do!
Lets ask Main Street Americans how to get lower credit card FEES and RATES from Wall Street what to do!
Now lets ask Main Street Americans who want to ReFi their Homes without giving Wall Street five or more years of POINTS (in Savings) to save 3/4ths %!
Lets ask Main Street Americans if they want to depend on Wall Street Bankers at ALL!
President Obama PLEASE Open a High Tech Government Internet Bank to serve Tens of Millions on Main Street!
.
Thank god the times are changing.