Here's an example. Let's say that I write you a check and you attempt to cash it or deposit it into your account at your bank. Since I have insufficient funds in my account, the check bounces. I'll get charged a fee for overdrawing my account, no problem as I should keep better track of my own funds. However, your bank will also charge you a fee, up to $15, for my check that bounced. This seems completely unfair, as you have no idea whether or not the check is bad when you accepted it. Why is it that banks can get away with this?
I'm tempted to write my congressional representative about this, after the elections, to see if there are any laws that can be enacted to prevent banks from doing this.
2006-10-26 01:56:34 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Any time you feel unjustly treated, whether or not it is legal (which you obviously realize the bank fees are legal) you should definitely proactively address the situation, like write your rep or contact the FDIC. Good for you for thinking of this situation!
As others have said...it may not seem right but it is legal. People, meaning both the customer and the banker, seriously underplay the disclosures given at the time of account opening. Most banks have a fee schedule which disclose all of the bank's fees. Review your disclosures when you open your account so there is no surprise later!
As an employee of a bank, I am not defending the bank's positions completely because the fees any other customers get charged, I do too. However, keep this in mind: you can probably imagine the thousands of checks that are returned every day. As much as things have gone electronic these days, much of "back office banking" is still done by an actual human. These people have to be paid, and they are paid by numbers of items they run each night. It is not a lucrative job, don't get me wrong, but it keeps some of our society employed. The bigger the bank, the more they have to pay. Again...the fewer the NSF checks, the less they have to pay out.
2006-10-26 04:47:41 · answer #1 · answered by miranywho 2 · 0⤊ 0⤋
I can see why your gf was angry. I can see that the bank did and usually does charges for transfers or overdrafts or both. I don't know that they charge that much as usually an overdraft fee is about $35 twice which equals $70. So unless that withdrew both of her accounts then that's probably it was $140. So now you owe your gf $140. The worst thing is that you both should not have accounts together like you did. And yes they were right in that if that account was not yours and you used it then that "is" fraud. So pay your gf what you owe her and split up your accounts so it doesn't happen again. This is a lesson to you to be observant. Yes mistakes happen and we pay for them. When a person opens an account with the bank the bank hands you a copy of their rules, and then every year or every update they make they send that to you also thru the mail, and you should read every bit of small print that ever comes to you thru the mail. ALL banks charge those kinds of fees, and in the future it will get worse, they will get higher. It's good that you gave her the money to settle the situation.
2016-05-21 21:59:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Banks have the law on their side. Although banks are heavily regulated by the federal government, they are given certain rights to make money. After all, bank and money are like husand and wife. The sad part is, however, all banks charge fees for bounced checks, and there is no way around it.
2006-10-26 02:07:25 · answer #3 · answered by mac 7 · 1⤊ 0⤋
It seems unfair, but, it's legal. If you stick with a credit union, or if you are a long term customer of a bank, you will be treated differently. I was surprised when one of my bank told me they will stop payment of one check I wrote and misplaced for free. They also have overdraft protection linked to my credit card, but don't charge any fee for that. I don't have a large deposit or anything. Just a long time customer. Other banks I have, is a different story.
2006-10-26 02:11:35 · answer #4 · answered by spot 5 · 1⤊ 0⤋
Banks do like to charge a lot of fees that is ridiculous. I had to switch banks one time cause they were charging per check to write. I dont agree with all the charges that banks have.
2006-10-26 02:18:35 · answer #5 · answered by cfoxwell99 5 · 1⤊ 0⤋
The banks rob you and skin you because they can. There are few of them, they are hugely rich and you need them. Most congressmen have a seat on their boards. Individually, you have less power than an ant under their shoe.
Did you not know that business is a jungle?Welcome to the real world.
2006-10-26 08:00:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Because they can. The banks have lobby groups. The politicians that make the laws that govern the banking industry are on the payroll of the banking lobby groups.
2006-10-26 02:08:07 · answer #7 · answered by Jabberwock 5 · 1⤊ 0⤋
if you are not treated fairly then contact OCC or FDIC, it will spark an audit of your issue and maybe even some change, ex-banker here.............$15 for an NSF check is cheap, most charge $30 now
2006-10-26 02:04:36 · answer #8 · answered by Anonymous · 1⤊ 0⤋