Comments on: You Tell Me: Overdraft Opt-In Rule

By: Jack Smith

Jack Smith — Tue, 09 Mar 2010 21:32:03 +0000

Before any of you start to think that this will be a great relief for the consumer, brace yourself for the bank counter attack. Overdraft fees have been the reason why checking has been “Free” for the last several decades. When that goes and consumers do not respond to the banks attempt to get them to “opt-in” for overdraft, you will start to see new and more nefarious fees on your accounts. There is no way that the banks will let billions in revenue go, just because the government intervenes. You will see new higher fees, higher loan rates, and less free stuff. Enjoy!

By: donna

donna — Mon, 08 Mar 2010 20:40:08 +0000

Elisabeth
You are not going to win , with your husband. IF it is his paycheck paying the fees, let him be responsible for his actions (actions and consequences). I believe that debit cards were created NOT to make it easier on consumers, but to actually get us in the mind set of using “CREDIT”. Think about it. Easy to charge on a credit card unless you have a limit, easy to whip out the debit card (visa or mc logo) and swipe that also. CASH, you are limited to what you have on your person. Your idea of keeping your paycheck may appear devious, BUT it is a protection for yourself and your family if your husband doesn’t reign in his debit card use, and his attitude.
I took my husbands debit card away from him (he is more compliant than your hubs). I take x amt of dollars out of the checking account for the week, give him his “allowance” and that is it. We are digging ourselves out of debt as i write, but we are also able to pay cash for any future purchases also, and i use my credit card first and write the check for the total when it comes due the next month.
There is something underlying with your husbands use of the debit card this way. He is struggling with the reality of his income, and outgo ratio. Is he trying to impress his guy friends? That could be insecurity, but also the media likes to make us all feel that if we don’t have something, we are worthless? You need to find out why (truth) he gets so angry, really find out the truth…
Mine knew that i had money hidden in the acct, and that any transactions would be covered, so he never paid attention and yes, he didn’t always give me all the receipts either…so that stopped when i took his card…. ;-)

By: Elizabeth

Elizabeth — Mon, 08 Mar 2010 20:04:20 +0000

The problem with debits and overdraft can happen, no matter how careful you are, if the other spouse is debit card crazy. He literally hands me a stack of receipts a couple of inches high every couple of weeks, and often it isn’t all of them. He also seems to feel it is a point of honor or something to buy what he wants and I had better not “embarrass him.” That is how a very expensive gun was bought from a friend without discussion. If he says he wants something, I better not object if it is in front of someone else. He won’t give up or cut back on debit because he says it is safer than cash, but we keep getting hit by overdrafts. Unfortunately, he is the primary wage earner, too. He was really mad a few years ago when he found out I set up a little account that my paycheck would go into first in another bank, but right now that is almost all the money we have because of horrendous cascading overdraft fees. If he wants pizza and is out of cash, he debits it. Most things I have seen seem to assume the overspender is the wife and is not the primary wage earner. How do you put the brakes on in this case?

By: Donna

Donna — Wed, 20 Jan 2010 22:26:30 +0000

Thanks Lynnae
I round up any checks written as well as any debits made with debit card and deduct them all… * had over $3,000 hidden in the account when my husband was temporarily taken out of service.
I also spend paper/save change to pay as extra towards the snowball debt reduction and now am able to stash $5 bills for more savings! It adds up quickly.
You really do have to come to YOUR SENSES when it comes to your life AND your money. Some of us are wise when we are young, some of us have to learn the hard way, but we reap what we sow. I had a good example for work and obligations through my parents.

By: 13lastedJuan

13lastedJuan — Wed, 20 Jan 2010 22:00:31 +0000

Hi everyone,
It seems that there is one important thing being missed in all the posting. Banks are businesses. Banks operate to make money, not improve neighborhoods, build schools, help the homeless or keep kids away from drugs and out of gangs. (some kid came to my door today asking me to buy an $8 candy bar for that last reason, ?)
Has anyone heard of a mechanic “fixing” a car to get the owner back into his shop? Some banks operate the same way. Most don’t, but there is a lot of pressure to make money, so some do.
There are financial studies that have determined a customer will not leave a bank once they have more than 7-8 points of contact or relationships (DDA, SAV, COD, car loan, mortgage, safe deposit box, etc) no matter how bad the customer is treated. Care to spend a nickel and guess why? Only your first guess counts. Drum roll please. People are lazy and deem it too much work to switch financial institutions once that magic number of relationships is met.
The increased Nanny state that most people publically abhor, but would accept if offered, is a direct response to American individuals, as a group, (ha) inability to demand better service. You should be a greedy with your money, as you are with you time, love of your life or whatever turns your crank. (mine is bourbon) And for goodness sake, if you think your bank is screwing you, call them and speak to a person. Chances are good you can get the fees-charges waived. If you, can’t get no satisfaction, find another bank or credit union. As of August 22, 2008 there were (some have failed) 8,430 FDIC-insured commercial banks (credit unions) in the United States.
I bet that if everyone reading this post, bought a bad crunchy-soft-cheesy-spicy-mild taco at Uncle Juan’s House of Crabs and Gentleman’s Club, 75% would go back for the same nasty taco next weekend. After all, that kind of service is what you’re putting up with at your bank of choice. Maybe Uncle Joe’s needs a bailout as well. –The End.

By: Andrea

Andrea — Mon, 16 Nov 2009 16:06:43 +0000

What really bothers me is that some banks will reorder the charges to get the most overdraft fees that they can. We had the situation recently where a company made an UNAUTHORIZED charge to our account (a small spending account that normally does not have much money). Rather than this charge alone incurring an overdraft fee, the bank reordered the charges and we ended up paying five or six fees! I think too for the customer’s own protection it would be good NOT to have overdraft protection on a debit card. What if someone got ahold of your card? With overdraft protection they can just keep charging and the charges and fees keep adding up. Good luck trying to prove you didn’t make the charges.

By: Rebecca Rivera

Rebecca Rivera — Mon, 16 Nov 2009 15:55:57 +0000

Another reason to try and only spend cash. You can’t overspend with cash.

Also when ever you deposit a check, wait the full 7 days to assure it is clear, even though the bank makes the funds available the next day. I had a problem when someone gave me a check, the bank made it available to me the next day, but like 10 days later it was returned. I should have waited the full amount of days or taken the check to that person’s bank and cashed it out.

I think overall the bank fees are getting ridiculous, as they are trying to recoup cost anywhere they can. I was charged $15 recently for going under $100 in my checking account. That was crazy. I cancelled the account.

Thanks for the article.

By: Christine

Christine — Mon, 16 Nov 2009 13:25:12 +0000

I think it’s a fantastic change and I’m shocked it happened despite the enormous lobbying power of banks. Score one for consumers!

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