Watch Your Back: Banks/Credit Card Companies Have Found Yet Another Way
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.
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The first, and most important, step that can be taken to start addressing the abuse that's inflicted on us by banks and lenders is to tell us the name of the bank and the lender. I think that a lot of us will know what we'll do with that information. Concerted action by American consumers in the form of the boycott will be more effective than appealing to Congress members and Senators.
Shame on Obama ( and anyone else, Rep or Dem) for refusing to cap credit card interest rates.
Instead, the Admin is covering its backside with deceitful and self-congratulatory talk about winning on "clarity and transparen
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?
My Bank of America statement recently said that because they had taken government bailout money, they were prohibited from paying more than 1/2% on savings accounts, then noted that they were already paying less than that (in fact, 1/3% at the time -- I think it's dropped since then). Needless to say, I have been moving my money to a credit union and will move more. I just hope the banksters haven't found a way to loot them, too.
Actually, the banks have a different tactic with credit unions, challenging the membership rules.
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.
The banks have taken over the IRS will be doing their collections soon with 40,000 dollar bill handed to every man woman and child in America via the bailouts so the bankers can keep their mansions and yachts. It is obvious to many of us who actually pay taxes we will be picking up the tab for the 43% of those that dont pay into the system so my bill is 80,000 or 320,000 for my family of four.
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.
Last week I took my last stay at home kid to open his first bank account. After he handed the banker his 200 bucks he looked real worried, "Mom, is this going to be like that South Park Margaritaville?". I almost died laughing..
This is why I use a local bank. Friendly service, local people, and they go the extra mile to make sure you're happy.
If you use a chain bank, you're going to get caught with this stuff.
Good article and sadly probably the first of many if you're going to chronicle the banking scams. Here's one for you - My brother had an ATM withdrawal from his account of $60 that he did not make. How do I know he didn't just forget? He was in a different state at the time from the ATM they indicated the transaction was made.
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...fo
Nice.
It is almost always good to read the agreement and monitor your balance prior to using a credit card.
This is nothing new. Our banks --- from local, to regional to national (B of A) have been doing this for years. They call it overdraft protection (Ha!) and say that their agreements with Visa or whatever make them unable to deny a purchase with a Visa Debit card ... so they punish the card holder with fees for giving you a provisional amount in your account to cover the charges. It sucks. And I agree with previous poster ... switch to a community credit union and find out what their policy is ... we just left b of A for a CU
These banks and credit card companies are shooting themselves in the foot.
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.
Community credit unions
We want our FREEDOM from "Wall Street DECIDERS!"
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!
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This has been happening for years. It is not a new thing. Both Wells Fargo and USbank did it to me to the point of the accounts becoming, essentially, prohibitive to use. USbank was the worst offender, though. Neither bank would "decline" a payment if I didn't have the money to cover it, they would just slap me with a fee that I would then discover upon attempting to bank. And then, even if they did "decline" the payment, a fee was still charged. Now I don't have an account, but occasionally I'll go to a Wells Fargo to cash a check and they want $5 as a "processing fee." Does it ever stop with these people?
Thank god the times are changing.
This story is just one small reason I stopped using a big bank after suntrust took over huntington which was great to me and on the day of the transfer of accounts, they wanted to charge me a service charge. I said no thanks, close my account and cut me a cashiers cheque which I promptly took down to my credit union and we've been happy together for the past ten years. I recommend credit unions or small community based banks to everyone and anyone who will listen.
Here's a good one. I have overdraft protection at a large bank that took a heck of a lot of bailout money. Had it for years. Upon scrutinizing my statement one day, I noticed a few $10 fees deducted from my checking account. I called up to find out what this was about. They said that they had instituted a new policy of charging $10 whenever their customers were overdrawn. Incredulous, I said "so you're charging me for the privilege of borrowing money from the bank at 20% interest?!??" They insisted that all they were trying to do was to "encourage" customers to know when they were low on funds. "But...but
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