What is a person to do?

Question

Recently I read an article about ending banks ability to manipulate transactions and processing them in what ever order they desire. This can, and often does generate Overdraft charges. I have also seen alot of comments about opening a line of credit for Overdraft Protection. What is a person to do, when their poor credit prevents them from getting this "Overdraft Protection"? My own credit score is just under 600. I have worked hard at raising it from around 435 in the last 6 months. But, despite my efforts to improve I have been declined a small line of credit for overdraft protection.
I have had to pay over $400.00 in overdraft fees in the last month. My paycheck is deposited at 10:30pm local time on Thursday night. The paycheck IS NOT cleared and posted to my account until Saturday morning after 8:00am. Which increases the chances of Overdrafts fees generated for any debits and credits done on Friday.
How can this be fair to people like me?

Answer 1

First of all, the banking lobby is one of the most powerful lobbies in this country, so going up against them is like fighting city hall. But, you may want to contact your state Attorney Generals office and file a complaint. It may or may not do anything, but at least you spoke your piece.

I would check to see where your employer banks. If you are not using the same bank, switch your account to that bank. That may solve the lengthy delay problem because funds that transfer from within the same bank should (theoretically) clear faster. Sit down with the customer service rep, tell them the problem you have run into and ask them how fast funds will transfer.

Barring that, and I know this is the Duh answer, try to build up a reserve fund in a savings account and tie that in with your checking account. I know there is no such thing as extra money right now, but with $400 in overdraft fees, it is time to build up that fund. You may have to take a second job for a month or two or hold a mega-garage sale, or do anything you can to put aside a few hundred to $1,000. When your account heads into overdraft, the bank just takes the money out of your savings account to cover it, usually charging around $5.00 instead of that nasty $30 fee.

I know, I know, if you had an extra $500, it would be in your account and you wouldnt be having this problem. It is time to go make the money and put it aside. At the very least, you will have the satisfaction of screwing your bank out of any future overdraft fees.

Barbara
www.therealestatebirddog.com

Answer 2

1. Don't authorize any debits or write any checks until after Saturday.

2. Find a bank, or preferably a Credit Union that treats you more fairly.

(And don't even think of contacting the scumbags that spam loans here. They'll drain your account and leave you swinging in the wind.)