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\"If you still want the beatings, call them up and they'll only be too happy to oblige.\"
Interestingly enough, so will I. New paddle needs to get broken in. :D
\"If you still want the beatings, call them up and they'll only be too happy to oblige.\"
Interestingly enough, so will I. New paddle needs to get broken in. :D
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-284146-100x100.png\")
I've been getting at least one mailing every other day or so from my \"good friends\" at Chase asking if I've opted in yet. And the envelope graphics and interior letter and accompanying sheets have been redesigned every time so it doesn't look like they're sending the same damn information over and over and over. Can't wait until July - they'll probably start sending them daily.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1538024-100x100.png\")
Same here, despite the fact that I canceled my Chase account months ago.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-66943-100x100.png\")
I have my own overdraft protection. I call it my 'keep more money in the bank than I spend every month' plan, and it works GREAT. It is one plan I refuse to opt out of. :D
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-224192-100x100.png\")
Of course, but there are always problems that can come up, such as fraud that drains your account. Then the overdraft fees are just one more thing you have to get sorted out. Better to not have that problem at all.
![\"user-pic\"](\"/css/images/default.gif\")
and if you have a decent bank, you collect a fee from them!
Granted, the misguided federal reserve is ensuring the fee I collect is monumentally low. Economic recovery needs actual investment...and actual investment doesn't happen at negative real returns and when the federal reserve insists on undercutting every one else. The latest FR nominee actually wants to see negative rates. That's not crazy in a \"it just might work\" kind of way...it's crazy in a \"shred your economics degree\" kind of way.
Except the Fed rate only affects the rate at which the bank gives you interest on your loans.
The banks haven't stopped charging 20/30/40+% interest on loans and credit cards just because the fed is loaning them money for free.
The entire reason the fed has dropped interest to 0% is because investment should be happening at 0%. People should be falling over themselves to lend money at 0%. 0% means that the Fed is giving banks free money. NEGATIVE rates mean that the fed will be PAYING banks to take money.
Banks would have to be run by IDIOTS to not write cohesive, profitable loa...
Oh.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-450305-100x100.png\")
Can hardly blame the friend for being confused given the banks have departments working overtime to spin this type of thing in their favor. Not everyone reads Consumerist...unfortunately.
I don't think it's necessarily a bad thing for this to be an option, though yes it is something you should have to opt into and be made fully aware of what you're getting into. Though $34 is still way too damned high something like charging you the amount that you over drafted wouldn't be so bad.
Btw, the flat numbers thing with TD Bank is because all their cards are made and encoded with card printing machines at the local branches now, rather than being mailed from some central credit card factory in the middle of nowhere.
I guess they decided that making it easy to get a replacement and open new accounts was worth the trade off of people not being able to charge debit with the few remaining embossing machines out there.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1526377-100x100.png\")
I was a member at a credit union that issued raised-number cards from the branch, the day you opened an account or needed a replacement. I'm personally a little freaked out by the flat card. Never mind the Best Buy issue... jeez.
Huh. I thought the new card was an identity theft attempt because of the lack of embossed numbers. (Also, having seen how easy it is to fake a card...) Feel free to insert \"The More You Know\" graphic here.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1541986-100x100.png\")
Guess it would suck if you ever run across one of those old manual card machines that makes an imprint of the numbers. Oy... I think I just dated myself!
My salon uses one
Goddammit. I just opted in to this. The sad thing is the limit on how many times they can hit you is actually lower than they've tried to nail me before. (Ah, the life of a freelancer.)
(And yes, my bank's one of the ones pictured.)
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1529717-100x100.png\")
I'm curious if you can opt right back out again
You can opt in and out as many times as you like, but the effect may not be immediate. So if you're opted out and you suddenly need to OD your account.. you may have to wait until tomorrow.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1542220-100x100.png\")
I recently opened an account with First Convenience Bank, because I love their business hours (what bank do YOU know that stays open until 7pm and is open on sundays?) Anyway, I told the clerk immediately that I wanted to opt out of the overdraft protection and then the problems started. She tried her best to tell me that having the protection was a good idea and even called her manager over to attempt to convince me. Their angle was that I may still be charged the overdraft fee if I have a monthly recurring charge that comes though or if I use my debit card as a credit card (because credit transactions often take 2-3 days to clear). I followed their line of logic with an equally powerful counter: I called every company I do business with and removed the auto pay features. I had to argue with a blockbuster online rep because she claimed that in order to have the service it had to be an automatic monthly fee. A threat that I would move to netflix nipped that one in the bud. Anyway, use those above examples to ensure you never get hit by any of those 'loopholes' where they can still charge you that overdraft fee although you have opted out. TBH, I never liked the idea of autopay anyway paying manually gives me a much better idea of my balances and where my money is going.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-255368-100x100.png\")
Several years ago, there was a branch bank in a grocery store that had a prominent sign: New Hours for Your Convenience! The only thing is, they closed earlier. I asked the person exactly how that was more convenient for me, and you'd think I was speaking a foreign language...
Forgot to add about the $1 gas authorization.... we have already made our system recognize those sorts of transactions. If the gas purchase goes thru since it only authorized for $1 and causes your account to overdraft, the fee will be waived. I don't know if other banks have that same check in place.
All the stations here are moving from the $1 hold to the $75 hold for gas. Almost makes me willing to go in and pay cash for $20 worth since I usually fill up needing $25-$35, I'd have to switch to attended stations, though.
I work for a large bank... What that teller told you about \"credit\" transactions still being hit with the fees because they take \"2 to 3 days\" is a load of malarky. The new opt-in/opt-out applies for those as well (it checks your available balance in deciding to approve/decline a transaction and authorizations appear instantly in most cases).
The part about recurring transactions is correct. I personally never liked auto-pay either since if the company ever makes a billing mistake, you have to fight them for a refund. I personally use online billpay thru my bank so I can set amounts and when payments are made. The companies do not have the ability to take more than I authorize.
The only way they can tag you with credit card purchases is if the merchant does a $1 authorization and then submits the full amount later (most gas stations seem to do this). Otherwise the transaction would be declined and no fees would be charged. The same holds true for monthly payments *provided you do them as credit card transactions*. If you set them up as debit card payments they are treated like checks and you'll get hit with a bounce fee *whether the bank pays it or not*.
The moral is to avoid debit payments and EFT transactions wherever possible and instead go for credit card transactions.
Or just don't spend what you don't have. That works too :D
Well my bank must be different because they have a credit 'overdraft fee' as well. In my experience, it is always the credit that takes longer to clear, and not every place puts a hold on the funds. Lets say you were taking a taxi from A to B and your debit card will be treated as a cheque. Let me tell you out of experience that you wont see that charge on your account until long after you had forgotten about it. (Thank the gods I have a car now). I am pretty responsible about my spending and I always try to keep at least 500 in the bank, but you never know what could happen.
The first time I called Capital One after the CARD Act was passed, they automatically routed me to someone to sell this service to me. He even made it clear that I could get it at a discount ... meaning they'll only charge me $25 instead of the $35 they did before (and instead of the $0 it would be by default). I refused, but he kept trying to sell it for a few more minutes.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1532345-100x100.png\")
I've gotten several notices from Chase bank with the alarming type on the front of the envelope \"Important News About Your Debit Card...You Must Decide Before Aug. 15!\" They make it sound like they will arbitrarily reject any purchase you make, even if you have the funds to cover it, unless you get the overdraft fee protection.
The fear-mongering pisses me off. I need to take a trip to my local credit union this weekend and see about signing up for a new checking account.
I encourage others to do the same if they haven't already. Here's a great website to help you get started:
moveyourmoney.info
My credit union sent out a little blurb in the monthly newsletter pointing out that they've never allowed these types of overdrafts, they were happy with the law, and watch out because other financial institutions will be telling you you need to opt in for \"convenience\" and \"safety.\"
They're not perfect, but they certainly try a little harder and i was VERY happy with that going out as a warning.
My credit union is hammering away at me with trying to get me to opt-in. I get a piece of mail pretty much every week and each time I log into their site I get a little pop-up telling me that I need to opt-in for my protection.
What is really funny is the form they mail to me. It says I need to mail the form back no matter which decision I make. According to it I have to opt-out or opt-in. I trash them as I get them. Maybe I will send a copy to Consumerist when I get the next one.
Hmmm, Bank of America sent me a letter saying what was going to happen (all accounts would automatically be opted-out) and a pamphlet detailing all 3 available options. But unlike the above banks this pamphlet made it clear the opt-out was the best option for most people and that they didn't need to do anything if they were OK with it. Go figure. Mind you I opted-out manually over a year ago.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-13251-100x100.png\")
My wife and I received one of these notices from our credit union. She asked what is was and I explained that if we used our ATM card and didn't have the $$ they take the money out and charge us a fee. The form that we got was to authorize this because of the changes in banking rules.
We agreed (wisely) to decline the banks offer of overdraft on our ATM card. We always keep track of our balance. My wife used to work in a bank and said that when they first came out the cards would be declined for NSF. If you don't have the $$ in there then it shouldn't work.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1094111-100x100.png\")
I can't say I'm in favor of this legislation, because since I never overdraft, I don't really want the banks to come up with any creative new fees that I might not be so immune to. But when I got that email from Chase yesterday, I knew I'd see it here, and it deserves to be here. It's outrageous that they twisted opting in to overdrafting for a $35 fee into a desirable (and free!) feature.
Yea, all the irresponsible people were feeding the banks' greed before.. now the responsible people that don't spend more than they have will suffer.
Spending more than you have isn't irresponsible. Or do you think everyone should have enough to buy their house outright upfront?
USAA must be behind the curve. They had better get on this :-)
Even if I ran out of money buying sodas with my debit card, they would just charge my credit card instead. For free. It has never been necessary, of course.
They didn't take bailouts, they pay interest, and I have never paid for anything but checks. And they pay me every month.
I leave like $7 in my old Wamu/Chase checking account. Just to mess with them. I am getting the mail blitz about it though. Strangely enough, direct deposit is shut off, and they haven't charged me a fee. Something must have gotten lost in the shuffle when this administration gifted Wamu to them.
WaMu was seized by the FDIC and sold to Chase on September 25, 2008. And George W. Bush was still POTUS at the time.
Heck, I remember Obama and McCain trading barbs over what happened with WaMu...
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-315699-100x100.png\")
I actually got a call from TD Bank last week asking me to do the same thing! I got the same letters in the mail 2-3 weeks ago. They really don't want this to go away...
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-291961-100x100.png\")
My CREDIT UNION has \"Opt In\" signs posted all over the branch.
At least they \"only\" charge $22 for an overdraft.
Wells Fargo has been flogging the opt-in on-line whenever I've gone to check my balance.
I figure that if the banks are this shrill about getting everybody back into the overdraft \"protection\" mode, it can't be good for the consumer.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-391270-100x100.png\")
It's amusing because in theory, ODP is a good feature incase you make a mistake. It's all the little tricks that banks do to max out how many times they can charge you that makes it terrible.
The most ridiculous lately have been those various \"saver\" accounts that dump extra money out of your checking account into savings whenever you buy anything. Wachovia was constantly pushing theirs before they started focusing on this whole overdraft business. It's such a blatant attempt to make people lose track of their balance.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-1021770-100x100.png\")
I just opened a second account at another bank. I told them specifically when I opened the account that I DID NOT want ANY KIND of overdraft protection at all.
They said \"Okay!\" and proceeded to wait exactly 30 days from the date of opening the account to send me a letter in the mail declaring \"Because of your excellent relationship with ******* Bank, we have enabled up to $300 in overdraft protection on your checking account!\"
I have not called them yet to get that yanked from the account. Will have to do that next week. I never signed anything telling them they could do that. Unfortunately, they never gave me anything to sign telling them NOT to do it either.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-1457521-100x100.png\")
\"They're always looking out for me.”
Yes, child, they are. They know a sucker when they see one.
People like that enable free checking and debit rewards. Hope everyone is happy what they're about to get...
I usually make transactions at the ATM. A couple weeks ago I went to the teller because I wanted to deposit cash. While I was in line, the guy from the office came up to me saying he wanted to discuss their overdraft plans.
I wonder if they profile people that are most likely to have overdraft fees.
I know I look like someone that could bring them a lot of money in fees...until they see my balance.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-1298983-100x100.png\")
I don't get it. Why pay 35$ for overdraft? My credit union will use my credit card, if that happens. Does not charge any fees, you pay interest on credit card only (19%) or you can pay 25$/YEAR for 12%. Shop around.
35$ / overdraft transaction is pure theft.
You wouldn't have a problem if you didn't over draft. Banks can charge whatever they want for them, if you don't like it keep your money under your mattress. It seems like everyone on the cosumerist just wants to bitch about SOMETHING. You are now getting the CHOICE to opt in or out. The banks make it clear as to what the charges are going to be. So now that everyone is so smart and going to opt out you won't be hearing the phrase completley free checking anymore!
My local Credit Union tries to get me to opt in every single time I log in to my Online Banking and has been doing so for months. As far as I can see there is no way to prevent the annoying message from displaying. Before the message it used to go straight to the account summary. Did I mention how annoying this is?
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-151293-100x100.png\")
I'm usually pretty good about tracking my purchases and knowing my balance, but I slipped up the other day (my fault) and bought a single box of Spree at a local store without realizing I was zeroed out. When I saw the overdraft, I had to reconcile myself with the fact that I had just paid $30 for a $1 box of candy. I was pretty upset. I won't wait for the deadline, I'm going to my bank Monday to tell them to cancel the overdraft protection immediately. I'd rather my card be declined and keep my money, thanks.
About a year ago I tried to get this 'service' removed from my Wells Fargo account and was told it's mandatory unless I get some type of account with a lots of restrictions, no bill pay etc. I'm glad this requires opt in.
Are you people high? It used to be people got arrested for passing bad checks. Now it's those \"evil big banks\" fault for covering your ass because you are a blundering idot? Screw you guys.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1536235-100x100.png\")
I think overdrafts of checks and billpay will continue. The new law affects only debit card overdrafts.
I find it amusing that you misspelled idiot in your attempt to attack other peoples' intelligence.
Tell me about it. Impossible to flag this troll. Captcha is way too demanding.
''Sorry, you didn't enter the correct code. Click here to try again.'' x 4
I work for a local credit union and we're pushing this REALLY hard lately. I think it's lame and opted out on my personal account, but we get incentives for each person we opt in, so hey, not my fault if you say yes. Surprisingly, of all the people I ask, 19 of 20 people say \"yes\" to opting in. Because it's too time-consuming to explain all the details of their choice (and they seldom ask), they don't fully understand what they're opting in to.
All you have to do to get an almost definite yes is explain that opting in will keep their account exactly the way it is now. People are scared of change so they'll opt in to avoid change.
I think it's great people now have a choice. For all the people that overdraft from their debit card all the time now will avoid overdraft fees!!
That's what happens when companies see potential decreases in income. I don't see anything wrong with that, the disclosures are big enough indicating that this is an optional service and the potential cost of using it.
It's now on the consumer hands (as it should have been since the beginning) to get that service or not.
It becomes ''wrong'', when the company harasses you, multiple times to opt-in.
Otherwise, I'd agree with you.
That's what happens when companies see potential decreases in income. I don't see anything wrong with that, the disclosures are big enough indicating that this is an optional service and the potential cost of using it.
It's now on the consumer hands (as it should have been since the beginning) to get that service or not.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1523472-100x100.png\")
I don't know why credit cards have raised numbers anymore. When they used the old Addressograph system, it was essential but with everything pegged to the magnetic strip, it would seem to be cheaper for the banks not to use raised numbers.
I've had a few solicitations from banks (one from a bank I don't even use) for this overdraft protection. I think I can live without it.
I bank with Regions (Close to my house, Free Checking w/Free Checks, Used to have awesome transparent neon green cards). You can opt in and out any time you want. I don't know if they'll change it or not, but I can opt in today if I have a bill coming out tomorrow, then if I overdraft-say-a car parment, no biggie, its paid and I pay the fee. Then I opt back out and nothing to worry about for a few more days :P.
One thing I thought was totally awesome thats new:
• If your account is overdrawn by a total of $5 or less after end-of-day processing, you will not be charged an overdraft fee for that day.
Full disclosure: https://secureapps.regions.com/rege/docs/reg_e_notice_2010_03_13_v7.pdf
The two times I've bounced a check were the banks fault, there should have been plenty of money but once they misplaced my deposit and once they paid two counter checks that should have been on another account with an almost identical name of my husband, we used to get some of his families mail, too. And once my husband got cussed out on the phone because someone was mad at the other guy.
I asked to make sure there was no overdraft protection on the last account we opened and I intend to have a talk with both banks to make sure there is none on either, not just on the debit card, but any transaction, since the letter I got stated it was only the debit card you have to opt in to.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1528361-100x100.png\")
Wow, that's pretty bad. I work for a large bank (not mentioned above) and we are not to give any pressure either way about Reg E. If they ask, we just explain what's going on.
Regardless, if people had any sense or self-governing capability, they wouldn't have gotten any fees to begin with. Spend what you've got, people. But now it's totally okay, cause Daddy Government will get involved to save you from knowing ANYTHING about your own financial state.
Say bye bye to completely free checking! Those of you who whined about getting charged for mismanaging your money got your way and can opt out and then have your debit card denied when you take your girlfriend out to mcdonalds for your dollar menu date.
You're the one who is whining.
I have had free banking for over 10 years, no ATM fees, no fees for checks, no annual fees, no setup fee, no charge for having a debit card. Sure, that's in the UK.
Over here, I have to pay ATM fees over the first $x per month and fees for checks (and my bank hasn't tried to get me to opt-in). Am I bothered?
Regions bank has worded it nerly the same as there (other) overdraft overdraft protection (Eg the line of credit they would charge 10 bucks from for every 100$ transfer into the acount) they would still try there damdest sometimes to hit you with a Overdraft if there automatic system wasnt runnin in the phinto second responce time tho.
I'm still mad at you regions for charging me a overdraft on a pending then hitting me for the post as well.
Anyway they make it sound like it's the other program putting the REAL fees in teeeny tinnny litttle bitty incy wincy (i had tgo take and scan it then blow it up) kinda small print.
I just checked my bank's website. There are a couple of notices about the Opt-In/Opt-Out decision.
On the specific page, they did make the Opt-In sound good and the Opt-Out was simple facts, but to give them some credit, it was only one paragraph for each and they listed all the charges for overdrafts on the same page, above the final selection button, so you didn't have to hunt around for it.
I don't know if that's required, but they've always been very good at letting you know exactly what you're getting into.
I have an account at BBVA Compass (previously Guaranty Bank) and recently got this letter, too.
I opted out, because the last two times I got overdraft charges, it was because my online statement had displayed the wrong balance to me for 2 days by removing pending charges, and money holds, so I had no way to possibly find out if I had any charges on my account. I just graduated from high school, so even a $5 charge made a difference to my account. Screw the banks and their overdraft fees.
To opt back in, I can do it through my online account but it takes 1 business day to clear.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1383453-100x100.png\")
I was a victim of \"account protection.\" I know how to look for it in any name or \"functional\" update. It caused me approx $700 in \"snow ball\" fees - I will never get anything like that again.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1537982-100x100.png\")
...or you could learn how to balance your checking account and not overwithdraw. seriously people it ain't that hard.
Haha. People are going to take one look at 34 dollar fee and throw it in the trash. I am surprised they disclosed the fee so openly.
I guess they are fishing to see if they can get people to sign up before they start making the fees reasonable, such as a sliding scale fee + 30%apr compounded daily.
In the end it is a loan, the problem is that people don't get any warning if they over draw and don't get the chance to decline. The charge just goes through. So a very large fee for what could be a few cents is just ridiculous.
A friend of mine went into a local TD Bank location to tell them she wasn't interested in this new \"service.\" That she would rather have them decline the charge if she doesn't have enough money. They told her that she would be charged $35 no matter what if it was declined for non sufficient funds. Which is a \"feature\" that is definitely not mentioned in their literature - they say you won't be charged if you don't have the money in your account. I'm curious if this is actually true, that they can charge you for using your debit card when it's been declined. In my mind, if your card gets declined for non sufficient funds then no transaction took place, and no money should be paid to the bank. On a side note, before they dropped the \"north\" from their name their tagline \"the bank of pleasant surprises\" always pissed me off. I've had a few surprises and none were pleasant.
Know what's sad? I have friends with master's degrees (MBAs even), Ph.D.s, even M.D.s who are wondering if they should sign up for this scam.
Uh...NO!
NO NO NO NO NO! I explain to them what it is and since I have a B.A. in a liberal arts subject, they totally ignore me. FINE! There's a reason why at the end of the month I know exactly where my money went and they have no idea.
I was just at Bank of America on Saturday and wasn't harassed about overdraft protection. I have also received nothing in the mail about it, no phone calls, and no e-mails even though I do online banking through B of A.
I guess since I've never had an overdraft on that account (and haven't had one at all since 1997 and that one wasn't even my fault, bank error) they consider me a \"deadbeat\" and won't bother with me.
You can lead a horse to water, but you can't make it think. Or something like that.
\"Honey Child\"? is Ben now a racist stereotype from a 19th century minstrel show?
Can they really do this?
They have already sarted they found anothe way to put the screws to us look at what my bank will charge me more than the overdraft can they really do this
•We will charge you a fee of up to $39.00 each time we pay an overdraft.
•Also, if your account is overdrawn for 5 or more consecutive business days, we will charge an additional $28.50 once every five business days thereafter until your account becomes positive.
•There is no limit on the total fees we can charge you for overdrawing your account.
That poor, ignorant, brain-washed girl quoted at the end is going to feel the banks hammer hit hard one of these days...
Does this mean the banks do not love me because they have not tried to get me to sign up for overdraft protection? :(
That girl is also probably a proud member of the tea baggers and believes that Fox news coverage is fair and balanced.
Yup, and then she's gonna scream \"I can't believe this is LEGAL! Why doesn't the government DO something about this??!?!?\"