| The advent of personal banking represents a great | | | | practice something called "transaction stacking." Simply |
| modern convenience. One product of the personal | | | | put, this is a method whereby the bank processes the |
| banking concept is overdraft protection. Rather than | | | | larger transactions before processing the smaller ones, |
| protect customers, instead it often results in the | | | | which increases the chances of an overdraft fee |
| charging of copious overdraft fees. Here is how to | | | | being charged. Banks do this tricky practice simply so |
| dispute overdraft fees and win. | | | | that they can increase their profits by charging |
| The advent of personal banking represents a great | | | | customers more money in fees each month. |
| modern convenience. The idea of personal banking is | | | | If you are upset about one or more overdraft fees |
| that the customer is at the center of the action, as | | | | having been charged to your account, you are not |
| opposed to the bank itself. Free checking, online | | | | alone. This is an everyday occurrence across the |
| banking, linked savings and checking accounts, | | | | country for countless people. |
| abundant ATM networks and overdraft protection are | | | | How to Dispute Overdraft Fees and Win |
| all bank offerings designed to make life easier for the | | | | There are effective ways to dispute your overdraft |
| average customer. At least, that's what their marketing | | | | charges. Here are some tips to increase your chances |
| departments want you to believe! | | | | of getting the fee removed: |
| In reality, much of personal banking is still all about the | | | | 1. Dispute the charge right away. The longer you wait, |
| banks and their profit margins. For example: free | | | | the worse your chances are of convincing your bank |
| checking is not so free, when you consider all of the | | | | to refund the fees. |
| fees that get piled on each month. ATM machines are | | | | 2. Get your facts straight. Write down the date, |
| wonderful, but try to make a withdrawal from another | | | | amount and store or vendor name of the transaction |
| bank's machines and pay heavy withdrawal fees. And | | | | that resulted in the overdraft fee. Think of yourself as |
| overdraft protection may be the worst of all: a cunning | | | | part detective, part defense lawyer. You'll want to get |
| method that banks have devised to separate you | | | | your story straight in terms of the who, what, when, |
| from your money, even while being disguised as a | | | | where and why before contacting your bank. |
| "protection program." | | | | 3. When talking to the bank representative on the |
| Overdraft protection programs do indeed protect the | | | | phone or in person, be sure to remain polite. |
| customer in one important way: they prevent debit and | | | | Remember, they are just another person on the other |
| credit charges, as well as checks, to be rejected by | | | | end of the line, trying to help you out. Avoid accusing |
| the bank by reason of insufficient funds. But that's | | | | the bank (or that person) of wrongdoing. Just simply |
| about where the protection part ends. Here's why | | | | state the facts and ask that the fee be reversed. |
| overdraft protection programs are not in all ways | | | | 4. If this is your first overdraft in 6 months or more, use |
| beneficial to the customer: | | | | that fact to your advantage. Point out to the bank |
| 1. A fee of $30 can be charged to the customer's | | | | representative that you are an excellent customer |
| account, even when the account is only overdrawn by | | | | who rarely - if ever - makes this mistake. |
| (say) $3 and is paid back within a few days by the | | | | Of course, disputing bank fees may not be the best |
| customer. If the overdraft protection were likened to a | | | | use of your time. An alternative is to simply switch to a |
| short-term loan, the interest rate that the customer | | | | bank that does not charge overdraft fees - even if |
| pays on this loan would be well over 1,000%. That | | | | you overdraw your account. These banks are not |
| should be illegal. | | | | always easy to find, but becoming a customer of one |
| 2. When processing outstanding debit and credit | | | | can save you hundreds of dollars a year in fees. |
| charges - as well as checks - many national banks | | | | |