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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
25189 posts

Overdraft fees of $225

Just saw on the evening news that the average bank customer had $225 in overdraft fees last year. That complete amazed me. What % of customers had zero overdrafts last year?




I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
34140 posts

re: Overdraft fees of $225
Lulz...no. never


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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
10176 posts

re: Overdraft fees of $225
quote:

What % of customers had zero overdrafts last year?


Not sure but yes, financial institutions make bank (pun intended) on non-interest income and much of that is still overdraft fees. Even after the consumer financial protection business.

Here's a Link


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
25189 posts

re: Overdraft fees of $225
That to me is what was so unbelieveable is they said the average overdraft fee is between $25-$35. If you assume that 1/2 the customers have no overdraft fees, it would equate to the other half paying over $50 per month in fees, 2 overdrafts per month.


Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
22312 posts
Online

re: Overdraft fees of $225
I haven't had an overdraft in years and years. I didn't like the way some of them went down in the past, plus I was a bit too trusting in the technology/their ability to cash my checks the day I deposited them.

Now that I'm rich I don't have this issue, and have USAA as well.


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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
10176 posts

re: Overdraft fees of $225
quote:

it would equate to the other half paying over $50 per month in fees, 2 overdrafts per month.


That number is definitely believable. I was a bank teller in college and there were a good number of customers that seemed to be perpetually overdrawn.

I can't remember if this has changed or not, but banks would charge you for each item that hit after you went negative and they would have the largest debits hit your account first so they could maximize the number of items that hit after you go negative. So if your balance is $10 and you swipe your card for $1, $1, $1 then $10, they made sure that $10 item hit your account first so they could charge you three fees.

I still work at a bank but far removed from branch life so I'm not sure if the CFPB has put an end to this.


Will Cover
Air Force Fan
Brentwood, TN
Member since Mar 2007
26389 posts

re: Overdraft fees of $225
quote:

What % of customers had zero overdrafts last year?


This one.

USAA


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32148 posts
Online

re: Overdraft fees of $225
Must be lots of people living paycheck to paycheck. I haven't overdrawn in probably fifteen years if not more.


wegotdatwood
Member since Aug 2009
17094 posts

re: Overdraft fees of $225
quote:

Must be lots of people living paycheck to paycheck


God, I couldn't sleep at night living that way. My version of "okay" is so much different than 90% of my friends and family.


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eng08
LSU Fan
Member since Jan 2013
2638 posts

re: Overdraft fees of $225
Never had one.


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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
43107 posts

re: Overdraft fees of $225
I had one my freshman year of college when my mother bought something on eBay and it was hooked up to my debit card...


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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
25189 posts

re: Overdraft fees of $225
quote:

So if your balance is $10 and you swipe your card for $1, $1, $1 then $10, they made sure that $10 item hit your account first so they could charge you three fees.


I understand banks have done some shitty things like that. Was watching one of the newscast of few years back and they screwed over one military man overseas really bad. He put money into his account but there was some bank fee, which he didn't know about, so he made 100s of charges all under $5(phone calls) and each charge carried a $25. He had no idea that each deposit that was going in wasn't even getting him to zero. Returning home he thought he had a few thousand in the bank, but he was in the whole over a grand.


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bbrownso
LSU Fan
Member since Mar 2008
3129 posts
Online

re: Overdraft fees of $225
quote:

I'm not sure if the CFPB has put an end to this.


I'm pretty sure that they can't do that anymore. In fact, the banks typically got sued and had to settle class action claims at pennies on the dollar for their "mistakes." So they were punished but not really.


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NC_Tigah
LSU Fan
Carolinas
Member since Sep 2003
59040 posts

re: Overdraft fees of $225
quote:

That to me is what was so unbelieveable is they said the average overdraft fee is between $25-$35. If you assume that 1/2 the customers have no overdraft fees, it would equate to the other half paying over $50 per month in fees, 2 overdrafts per month.
Sad truth, and obviously those are the folks who can least afford extra charges to begin with.


aaronb023
LSU Fan
TeamBunt CEO
Member since Feb 2005
11774 posts

re: Overdraft fees of $225
while this isn't a story about bank overdraft fees, I did get charged a late fee and penalty apr of almost 30% (for a 6 month review period) because I accidentally paid my American express card 1 day late. just got off the phone with them. not only did I get them to cancel the penalty apr but they took the interest off from the past two months as well as the late fee.

Image: http://1.bp.blogspot.com/-ebLVi3cxPZ8/TzEc6xke-QI/AAAAAAAAD-I/ypMflv_maN8/s1600/Success-Kid.jpg width=200


though it was my fault, I was ready to cancel my card (or at least threaten) and go with chase sapphire or capital one venture if they didn't do what I wanted. 1st world problems


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Blakely Bimbo
Alabama Fan
Member since Dec 2010
1183 posts

re: Overdraft fees of $225
While a vast majority of these fees are charged to people who live paycheck to paycheck, I know a couple of people who are retirement account heavy and cash poor. One mistake in the checking account, and wham! ridiculous.





HamCandy
LSU Fan
Team Meat
Member since Dec 2008
541 posts

re: Overdraft fees of $225
Side note:

I made the mistake of opening a bar tab with my debit card at the strip club, while in college, and buying 1 beer. Had no idea that the strip club could automatically withdraw or hold an amount of money in your bank account... $300.00 to be exact.

This lead to an over draft.

I over drafted in college a few times and would just call the bank and tell them my pops transferred money late. They always returned the OD fee.


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