I am very careful about my bank accounts, but overdrafts still happen. I do not have thousands of dollars I can leave in my account for the bank to use for free. My wife used the wrong debit card and even though here was already a deposit made to account and debit did not clear until three days later. Fees on a $31 Overdraft = $75 3 smaller amounts were assessed even though one of the larger checks would have easily have cured the overdraft.
Second example was an Automatic budgeted withdrawal date was changed by the utility company date was changed to a 8 days earlier than the monthly date that had been used for over five years, Yes, I probably had notice, but I was not looking for a date change. Caused a $107 overdraft, they charged my account $144 the first day for four smaller checks totaling $117 when the utility check would have cured the overdraft. Since I was unaware of overdraft and the overdraft charges were deducted, 2 more small checks totaling $34.96 next day —$72 more overdraft fees
Made a normal $750 deposit 3rd day (unaware of overdraft) but balance is not available until next day 1 more check cleared for $56 for another $36 overdraft charge. I received overdraft notice for day one on day 4 (Saturday) Monday made deposit to cure overdraft but 3 more checks hit against unavailable funds, another $108.
So the end result were fees totaling $360 on a overdraft of $107 for an annual rate of interest of 7,368% for the 6 days.
In Rotary we have the Four Way Test
1. Is it the Truth?
2. Is it FAIR to ALL concerned?
3. Will it build GOODWILL and BETTER FRIENDSHIP?
4. will it be beneficial to all concerned?
It may be legal and per contract, but is it Ethical? I do not believe so.
If you believe this is ethical and follows Rotary's FOUR-WAY Test, then you must work for the banks or credit card industry. It amazes me that many of the responses seem to support protecting these predatory practices. Bank employees? I say if it just doesn't seem to make sense, follow the money to find your hidden agendas.
Do you agree that these predatory practices must stop? How many of you have contacted your congressman/congresswomen about these Usury tactics. If not please do so immediately. Http://clerk. House. Gov/member_info/index.html
http://www.senate. Gov
I believe an active campaign to prevent these horrendous predatory fee practices by the banks (such as 1. Charging overdraft fees on each smaller check
first rather than the one larger one, when they are not sending the checks back anyway, 2. Crediting deposits AFTER debits, 3. Holding deposits for days even if drawn on their bank, 4. Counting debits and over drafting account even though the transaction was cancelled or never completed) of hiding rates that far exceed 7000%, far greater than Payday loans fees and charges. At least you choose a payday loan vender. But, they both prey on the poor, unlucky and uneducated.
Michigan restricts the rate of interest on personal loans to 7% per annum, most states have similar Usury statutes. However, the powerful banking lobby, funded by the 19 Billion in late charges and the 700 billion Bailout money, have convinced congress with campaign contributions and lavish trips that usury laws are not needed.
If you need help contacting your congressman / congresswomen or would like join a possible class action suite, please call me email me
Should the RICO act laws on "loan sharking" (charging twice the state usury rate) apply to banks? If so, the 19 billion the banks made last year on excessive overdraft fees could be considered the result of Racketeering in violation of Racketeer Influenced and Corrupt Organizations Act of 1970 (RICO)
Aj
Hillsdale, Michigan
U.S.A.
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