| Overdraft fees cost Americans collectively over $27 | | | | banks are creative and wily in their search for more |
| billion per year, making them a significant part of | | | | profits. It's clear that they will always be trying to find |
| customers' overall bank fee structure. In fact, the issue | | | | loopholes in the new laws so that they can keep |
| has garnered so much attention that even congress | | | | charging big-time fees. |
| has enacted legislation to force banks to make | | | | The Consequences of Unpaid Overdraft Fees |
| customers more aware of their choice about whether | | | | If you have incurred some overdraft fees that have |
| to enroll in overdraft protection programs when | | | | not yet been paid, you need to make sure you pay |
| applying for a new account. | | | | them before leaving your current bank. Otherwise, |
| How We Got Here | | | | your name may get reported to Chex Systems, which |
| The current overdraft fee epidemic has its roots in | | | | is a "risky bank customer" reporting system that banks |
| two parallel phenomena: the rise of overdraft | | | | use to inform each other about "problem" customers. |
| protection programs and the exploding use of the debit | | | | Once your name is in Chex Systems, it can be hard to |
| card. | | | | open a new account at most banks. |
| Overdraft protection programs: as their name implies, | | | | How to Get Help Paying Off Overdrafts at the Bank |
| these programs were ostensibly designed to protect | | | | The only one that is going to help you pay off the |
| customers from having their checks bounce or their | | | | overdrafts, of course, is yourself. Here is how to get |
| debit transactions rejected. However, the reality is that | | | | help paying off overdrafts: |
| these programs are not-so-secret moneymaking | | | | 1. Examine your bank statement carefully before calling |
| machines for the banks. That's because, while the | | | | the bank. Make sure you know the transaction |
| bank will cover the overdrawn charge, they also turn | | | | amounts, date of transaction and vendor name related |
| around and immediately charge a hefty fee of $25 or | | | | to the overdraft(s) before calling. |
| more for the favor. | | | | 2. Be nice! The person at the bank whom you are |
| Debit cards: for customers with overdraft protection, | | | | talking to is just another person. You will attract more |
| banks will honor a pending debit card transaction even | | | | flies with honey... (you know the rest). |
| if the transaction would overdraw the account. All of | | | | 3. Just state the facts and avoid getting emotional. You |
| this happens with no warning or signal to the bank | | | | have a much better chance of convincing the bank to |
| customer. What this means is that you could go out | | | | refund your overdraft fee if you are polite and state a |
| shopping all day at multiple stores, come home, and | | | | logical case for getting the money paid back to you. |
| have incurred 2, 3, 4 or more overdraft charges in one | | | | If all of this seems like a lot of work and you just don't |
| day without even knowing it (until you check your bank | | | | have time for it, consider your other option: switch to a |
| statement and see all of the fees there). | | | | bank that does not charge overdraft fees. In the |
| Where We're Going | | | | personal banking market today, there are actually |
| Some recent congressional legislation has passed that | | | | banks who will never charge you an overdraft fee - |
| aims to protect the bank customer from fees. For | | | | even if you overdraw your account. And, there are no |
| example, there is legislation that forces banks to tell | | | | penalties, either. If you are tired of paying overdraft |
| account applicants about the implications of overdraft | | | | fees, these banks are worth finding and switching to. |
| protection programs upon sign-up. Still, we know that | | | | |