| Banking today seems to be a much more complicated | | | | banks make about $26.5 billion per year in overdraft |
| affair than it was just 10 or 20 years ago. The advent | | | | fee charges last year alone. This is a lucrative thing |
| of debit cards, online banking, the ability to link checking | | | | that banks have going and they don't want to spoil it! |
| and savings accounts, and tons of banks competing | | | | If you have recently checked your bank statement |
| actively for your business can be overwhelming for | | | | and discovered multiple bank overdrafts there, here |
| the average customer. | | | | are some tips for how to remove bank overdrafts: |
| After all, most of us just want a few simple things | | | | 1. Start by doing your research: Check your online or |
| from our bank: a safe place to keep our money, | | | | paper bank statement and write down all of the facts |
| access to our cash when we need it, and the ability to | | | | about the transaction in question. Can you show that |
| charge purchases or write checks to pay for things | | | | there actually was money in the account at the time |
| we need in a convenient fashion. | | | | of the overdraft? If so, you may be able to build a |
| However, banking is big business. And, where there's | | | | case to convince them to reverse the charge. |
| money, there's creativity. Banks are always looking for | | | | 2. Call your bank's phone hotline: Put on your nicest, |
| ways to make themselves more attractive. In the | | | | best phone voice. Remember, this person gets calls |
| 1980s it was ATMs. In the 1990s, it was free checking. | | | | like yours every day - or maybe every hour. You will |
| In the current decade, it is overdraft protection | | | | need to be polite, even if he or she shoots down your |
| programs. | | | | initial argument. Get them to see the facts. At the very |
| Overdraft protection sounds like a great idea. After all, | | | | least, get them to see how things appeared to you, the |
| who doesn't want to be "protected from their | | | | bank customer. |
| overdrafts?" In fact, protection sounds like just the kind | | | | 3. Ask them to remove the bank overdraft charge: |
| of thing we all should expect from our banks, right? | | | | Your bank values you as a customer. Keep this fact in |
| Still, the reality of overdraft protection is not so simple. | | | | mind when you are calling to ask them to remove the |
| It's true that overdraft protection protects you, the | | | | charge. You have a better chance of getting it |
| bank customer, from having your debit transaction | | | | remove if you can show that it was your first such |
| denied or your check returned. But, this protection | | | | charge in a while. |
| comes at a steep price: paying big bank fees. | | | | 4. Avoid losing your temper: Remember, it will almost |
| What makes overdraft protection programs tricky and | | | | never be effective if you lose your temper with your |
| confusing is that banks can purposefully manipulate the | | | | bank rep while trying to negotiate for a fee removal. |
| transactions they are processing in order to tip the | | | | Still, if you are truly on the verge of leaving your bank |
| scales in their own favor. For example, by processing | | | | due to their craft overdraft fee policy that seems to |
| the larger transactions first (and if your balance is | | | | be draining you every cent you have, maybe showing |
| already low), the bank's action could push your balance | | | | a bit of irritation could work in your favor. Just |
| into negative territory. And this makes room for all of | | | | remember, though: be ready to back up your bluff if |
| the smaller transactions they process immediately | | | | they call it. |
| afterward to incur an overdraft fee of $25, $30 or | | | | If you end up failing to get your bank to remove your |
| more to your account. This happens each time one | | | | overdraft charges, consider switching to a bank that |
| hits. Boom. Boom. Boom. "That will be $90, please!" | | | | does not charge overdraft fees. You can even find |
| says your bank. | | | | banks that will cover your overdraft without charging a |
| This practice is making banks quite wealthy. In fact, | | | | fee. |