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In the recent past, US banks were found to have specifically designed software to calculate how to best re-order customer transactions to maximise overdraft fee
by initplus 3y ago
In the recent past, US banks were found to have specifically designed software to calculate how to best re-order customer transactions to maximise overdraft fees.
Banks also generally make it hard/impossible to opt out of overdraft, something that would probably be preferable to many customers. Overdraft fees are a huge source of income these days.
- hot_gril 3y agoYeah it's annoying, but that still doesn't make it a hidden fee. They tell you upfront, and your "opt out" is to not overdraft your account.
- tadfisher 3y agoBanks in the US must provide a way to opt out of the overdraft "service", after which they will simply decline transactions instead of overdrafting the account and charging for the privilege.
- hot_gril 3y agoI agree fully. It's just not a junk fee similar to the hotel ones.
- jjeaff 3y agoyou don't see how going to the bank during work hours to get an overdraft charge would be difficult for a lower income person? I'm going to guess you live in the suburbs for one and that you have a vehicle and a flexible, white collar work schedule.
- hot_gril 3y agoDid you reply to the correct person? But yes I have three cars and a flexible work schedule, as well as premium bank support.
- KennyBlanken 3y agoAdding further: many banks make it difficult or impossible to opt out of overdraft programs. I had to have a huge argument with my local rep. She kept insisting "what if there isn't enough money to cover the transaction?" and did not seem to understand that it was perfectly acceptable to me for such a transaction to fail, rather than succeed and incur a substantial fee.
- hobs 3y agoTo anyone reading this, you often need to write a letter to the bank. I was quite irritated at the time and made the bank manager give me a piece of paper which he then accepted as a "letter". Don't get me started on the level of irritated you need to get a bank manager to void protocol, lol.
- webninja 3y agoYes, especially at the big banks. Either they became big by making more money charging fees or they stopped caring about their customers because they’re too big to care. Smaller online banks & credit unions typically don’t have any fees now.
- switch007 3y agoShe very likely understood but was just under immense pressure from her boss. The same play dumb routine was very common here in the UK too. They made a ton of money on overdraft fees until 2020 when the law banned the outrageous fees.
- WalterBright 3y agoWhen they'd do the reordering to me, I'd go visit the bank manager and point out how many years I'd been a loyal customer. Then she'd fix it.
- j-bos 3y agoThat's great, and sad that such a thing would be necessary.
- WalterBright 3y agoPointing out that you're a loyal customer often fixes problems. (And being nice about it.) It works a lot better than complaining on the internet!
- j-bos 3y agoTrue, maybe loyal pleas would echo up better.
- t-writescode 3y agoCool story. How does that help the hundreds of thousands of very poor people who are trying very hard to pinch pennies in dire straights?
- WalterBright 3y agoIs there something preventing them from visiting the bank manager? Or are you implying that being poor means the bank should cover the overdraft?
- heyoni 3y agoI think they’re implying that the banks shouldn’t reorder the charges and should pick up the phone when we call them to opt out of overdraft altogether.