Tuesday, April 03, 2007

BE AWARE!!!! Overdraft fees are a money making scams of banks

Overdraft fees are a money making scam of banks.

Indeed, I do agree with writing a check and the bank covering it and saving the consumer of a NSF fee at the bank and one from the merchant. That is without a doubt looking out for the best interest of the consumer. Why are banks not responsible for creating awareness on how these fees are truly being assessed.

When a bank offers online banking it should mean online banking. Many Banks practice posting pending transactions to customers accounts and if a merchant has not batched out their machine within 1 to 4 days the pending transactions are removed from your account. When this happens your account balance increases and it looks like you have a larger balance. Low an behold, the merchant transaction that were removed from pending status on your checking account posts to your account flipping your account to a negative balance, if funds are not sufficient, and every other debit transaction greater than a cent after that will be assessed an overdraft fee. the bank replied by saying that the customer needs to keep track of their charges manually, which totally defeats the purpose of online banking. If the banks are looking out for the best interest of the consumer then they need to keep the pending transactions pending until they post to the account. Otherwise, the whole point of Online banking is defeated if the consumer has to manually keep track of their transactions. I think banks do not want this discussed for the money potential is much greater than hurting a consumers feeling and declining a transaction due to pending ones. The thing that is most disturbing is the bank doesn’t tell you that they remove the pending transaction after 24hours you have to pull it out of them. What’s the purpose of online banking if you have to keep tabs on your balance manually???

Trick #2

Some banks used two different balances, an available balance and actual balance. They would then lower the available balance by debit card transactions. Then if a check comes into the account they would return the check based on the AVAILABLE not the ACTUAL balance on the account.

Trick #3
They're now counting pending debit card transactions against the ledger(actuall) balance. Most banks recommend signing up for overdraft protection in the form of a savings account that autotransfers funds, for a $9 fee per month, or use a credit card. The nut in the shell is that some banks is predating funds before they clear(post) to generate additional overdraft fees.

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