After reading all of these posts regarding NSF fees, I began to realize that there is definitely a problem regarding these fees.
I don't deny that people need to be responsible and manage their money.in fact, this is the exact argument any financial institution is going to give you when you dispute something. The only problem is, everyone gets in a bind and this is a known fact... And what should not be allowed is the gauging of customers when something occurs.
Example 1:
I went on a long weekend trip, started thursday and came back sunday night. I made various POS purchases (point of sale, using my debit mastercard) thursday and friday which totalled about 160.00, but they were broken down into about 12 different transactions of various amounts. Before the POS transactions and 400.00 deposit, I had about 145.00 dollars in the account.
I deposited a check after hours friday for over 400.00. I had one outstanding check for 125.00 which had not hit yet as of friday. Come monday, I find out that my balance is horribly low, much lower than I would expect. It turns out that...
A. My 125.00 check cleared at 8am monday morning, dropping my balance to 20.00
B. My POS's from thursday and friday all came in at 9am, with the first one over 20 dollars, getting an NSF and charging my account a 20.00 NSF fee (making my balance zero) and then putting it into the negative for the POS. All following 11 POS's charged 20.00 NSF and added their totals to my negative balance. My balance was now negative 400.00 (240.00 in NSF charges, because there was 12 and the 160 in POS purchases I made)
C. My 400 dollar check posted at 10-11am.
The end result was that I had about 30 cents left in my account (im going off memory here, i think i might have even been in the negative by a few dollars still)
Instead of having about 240-260 left in my account, (the 160 in POS's subtracted from my 400.00 deposit) I know had nothing. It was absolutely horrible as I wasnt going to be able to pay 2 bills and I'd have no money for two weeks.
Its QUITE a coincidence that deposits are processed AFTER checks and POS's are cleared... I wonder why that is? If the deposit times are earlier than the withdrawals, I still have my money. (we swap those times and I still have 240.00 of my hard earned money.) Instead I get gauged for 12 NSF's.
The whole situation just felt wrong. Arguments can be made that I should be more in tune with the deposit times... But if you look at what I stated its obvious that this whole system is in place to gauge people. I don't expect any answer from the bank that would make me happy, because legally they are protected to gauge people... So they dont HAVE to say anything otherwise. I would have even accepted 40-60 dollars in charges total... But jesus, 240.00
Here is my other comment. I have a friend who has worked at a bank as a teller for year and I have some trustworthy information. The banking industry lobbies congress for these NSF fees, so they can increase their profits on easy targets. Thats why NSF fees are what they are. This is why you get double dinged if a check bounces. (the NSF from your bank, then the returned check fee for the merchant recovery). The whole system is constructed to pray on people who are tight on money and that work paycheck to paycheck. These are the easiest targets.
Banks say these fees are necessary to cover their costs of getting everything straightened out. THAT, is a line of BS because its all done on computer and there is very little overhead on these dollars. For example, if your bank charges you 31.00 per NSF, its only spending anywhere from 1-3 of those dollars on the system and the rest is profit. (system being, install of equipment, cost of equipment, being hooked up to the electronic network, maintenance etc...) Once the actual costs of the equipment is payed for, the only thing they do is pay for maintenance which is almost ZERO. Basically, the system pays for itself almost immediately.
How did this occur? Well again they lobbied congress and convinced our legislature that the manpower/labor costs/etc... Warranted these high dollar NSF and returned check fees that they must swallow.
Its a real big pill to swallow and I think its horrible that peopel are allowed to get gauged like this. Don't EVER put up with the standard industry answer of "if you managed your books better you wouldn't have these NSF fee's..." because that is just part of the loop that is used to keep you in the tangle. My suggestion is to find a bank that has overdraft protection, and call and write your representatives in government and tell them how you feel about htese ridiculous fees banks are allowed to charge.
And as the banks say, watch your money! Or they will take it.
Jennifer
Cleveland, Ohio
U.S.A.
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