4 ms·
Large banks will do things like structure charges so as to extract the maximum amount of overdraft charges. For example: You have $40 in your account. You sp
by pyre 11y ago
Large banks will do things like structure charges so as to extract the maximum amount of overdraft charges. For example:
You have $40 in your account. You spend $20, then $12,
then $5, then $120. One would logically conclude that at the
end of the day, the bank will resolve these *in order* and
you will have a single overdraft fee. Large banks *cough*
Bank of America *cough* will explicitly structure those charges
to resolve like this: $120, $20, $12, $5. Now you have 3
overdraft fees ($35 a pop when I was with BoA) instead of a
single overdraft fee.
Do you not see anything morally and ethically wrong with this?
- Touche 11y ago> Do you not see anything morally and ethically wrong with this? That's not the language the person I was responding to used.
- danharaj 11y agoThey don't have to because most people know that powerful institutions tend to act in bad faith in order to extract as much gain as they can from the vulnerable.
- jeffasinger 11y agoThe even crazier thing about your example, is that they have different offerings for their high net worth" clients, and with those offerings, the structuring is usually much more in the favor of the client than what someone walking in off the street will get. Essentially, a poor person will be charged higher fees than a rich person.
- tsotha 11y agoWasn't the law changed so they can't do this any more?
- ars 11y agoYes, it was.
- rcarrigan87 11y agoI've personally experienced this, so frustrating!