4 ms·

Bank fees, like overdraft fees, sting when money is scarce.

LordKano 12y ago
The banking reforms that took effect in 2010 have made it more difficult for banks to screw people with overdraft fees. As an anecdote, less than two weeks before those protections went into effect, I overdraw my account. It was my fault, I lost track of my account balance and overdrew my account. I legitimately owed one overdraft fee. My bank, re-ordered the transactions for that day so that instead of merely overdrawing my account for one transaction, I overdrew it for five. I got a printout of my account activity and compared it to my purchases and figured out what they did. I called in and complained, they agreed to waive two of the five overdraft fees. I still ended up paying $90 for what should have been a $30 overdraft. I stopped doing business with that bank immediately. I have since switched to a credit union and have never looked back. Community banks and credit unions are useful for the poor to get a foothold on financial stability. I have a friend who, while not truly poor, is financially irresponsible and he has come to plan on paying overdraft fees every payday because he can't control himself for one month and not overdraw his account. I'm sure that his bank loved him, he was paying at least $60 per month in overdraft fees. He was actually upset that banks wouldn't default to offering him the "service" of allowing his overdrafts.
- briantakita 12y ago
  > The banking reforms that took effect in 2010 have made it more difficult for banks to screw people with overdraft fees. The rules have changed but the game is still the same. > I have a friend who, while not truly poor, is financially irresponsible and he has come to plan on paying overdraft fees every payday because he can't control himself for one month and not overdraw his account. Sounds like he may be better off not having a banking account. It's easy to call someone irresponsible with this externally imposed money game, however there's much more important things in life than money. We should be focusing more on those things, make those things priority, & give those things more value.
  - LordKano 12y ago
    >It's easy to call someone irresponsible with this externally imposed money game, however there's much more important things in life than money. I take your point but my friend really is irresponsible with money. For example, going shopping for "groceries" at the convenience store across the street because the 5 minute drive to the supermarket is too long or spending money at the bar when he knows that he has bills due before his next payday or putting off a utility payment or the purchase of required medicine so that he can buy... party favors.

The banking reforms that took effect in 2010 have made it more difficult for banks to screw people with overdraft fees. As an anecdote, less than two weeks before those protections went into effect, I overdraw my account. It was my fault, I lost track of my account balance and overdrew my account. I legitimately owed one overdraft fee. My bank, re-ordered the transactions for that day so that instead of merely overdrawing my account for one transaction, I overdrew it for five. I got a printout of my account activity and compared it to my purchases and figured out what they did. I called in and complained, they agreed to waive two of the five overdraft fees. I still ended up paying $90 for what should have been a $30 overdraft. I stopped doing business with that bank immediately. I have since switched to a credit union and have never looked back. Community banks and credit unions are useful for the poor to get a foothold on financial stability. I have a friend who, while not truly poor, is financially irresponsible and he has come to plan on paying overdraft fees every payday because he can't control himself for one month and not overdraw his account. I'm sure that his bank loved him, he was paying at least $60 per month in overdraft fees. He was actually upset that banks wouldn't default to offering him the "service" of allowing his overdrafts.

briantakita 12y ago
> The banking reforms that took effect in 2010 have made it more difficult for banks to screw people with overdraft fees. The rules have changed but the game is still the same. > I have a friend who, while not truly poor, is financially irresponsible and he has come to plan on paying overdraft fees every payday because he can't control himself for one month and not overdraw his account. Sounds like he may be better off not having a banking account. It's easy to call someone irresponsible with this externally imposed money game, however there's much more important things in life than money. We should be focusing more on those things, make those things priority, & give those things more value.
- LordKano 12y ago
  >It's easy to call someone irresponsible with this externally imposed money game, however there's much more important things in life than money. I take your point but my friend really is irresponsible with money. For example, going shopping for "groceries" at the convenience store across the street because the 5 minute drive to the supermarket is too long or spending money at the bar when he knows that he has bills due before his next payday or putting off a utility payment or the purchase of required medicine so that he can buy... party favors.