… transaction will put them into the red. In addition, the legislation would limit the number of overdraft fees to one a month, six times a year. But many banks are trying to jump ahead of the legislation, making changes to their overdraft protection policies while doing just enough to argue that new legislation is unnecessary while not cutting into the massive profits they make on overdraft fees.

The article said:

“Bank of America, Wachovia and JPMorgan Chase & Co. said they will …

Tags: Bank of America Debit card JPMorgan Chase Overdraft Wells Fargo

Permalink: /job_loss_unemployment/putting-the-breaks-on-bank-overdraft-fees/

According to an article in the Daily Finance, the amount of profits banks are earning from overdraft fees has nearly doubled since 2000 reaching a record $38.5 billion. The average bank overdraft fee rose from $25 to $26 for the first time in over 40 years, causing some consumers more trouble than their high interest credit cards. And many consumer advocates say, that’s exactly the point of increased overdraft fees on consumer bank accounts. Many consumer advocates claim that …

Permalink: /credit_bankruptcy/banks-lose-on-credit-cards-but-rake-in-billions-on-overdraft-fees/

Most banking customers are unwittingly enrolled in their bank’s overdraft loan program which costs on average about $34 per overdraft occurrence. What this means is that if you mistakenly overdraft your checking account while purchasing coffee for $3 you will be charged $3 plus a $34 fee by the bank to cover the transaction. But there are cheaper alternatives.

Linked Savings Account – This program allows the bank to access your savings account when …

Permalink: /loans-mortgages/bank-overdraft-loans%e2%80%a6are-there-cheaper-alternatives/

… card, keep a running tally of what you are spending as you go from store to store.

Opt-out of overdraft “protection” programs offered by your bank.  As we have mentioned before overdrafts can end up costing consumers more than what the price of the original purchase. The average overdraft price tag was $34 in 2008. To avoid spending as much as twice what you paid for an item, don’t allow you bank to “protect” you with their overdraft program, just simply opt-out. Note: The …

Tags: Christmas Debit Cards Overdraft

… Dodd, D-Conn., said he plans to introduce legislation that would require customers to sign up for overdraft protection.”

In response to the proposed legislation which would mimic rules designed for the credit card legislation, some banks quickly moved to reform their over-draft policies for debit cards and bank accounts.  For example, Bank of America customers will not be charged overdraft fees when their bank account is overdrawn by less than $10 a day.  However, a $35 fee will be …

Tags: Bank of America Christopher Dodd Credit card Debit card Overdraft

… may send it through anyway. In that case you could end up short of funds or worse, with an overdraft. It’s best to keep some cash on hand or open a separate bank account if you feel that you are at risk for a bank account offset.

Do you suspect that a creditor might seize your bank account before you file bankruptcy?  Has a creditor already filed a lawsuit against you and won a judgment?  If so, you are in imminent danger of a bank offset taking …

… be you.  No one likes debt.  Spouses never enjoy struggling through another budgeting session of overdraft fees.  Instead of letting your debt control your life and stress you into significantly worse decisions that could permanently affect your marriage, talk to a bankruptcy attorney about how to get control of your debt.  You and your spouse can meet with the bankruptcy attorney together to review what your debt issues are and the best type of bankruptcy for your situation.  A good …

… Fortunately, bankruptcy discharges bounced check debts and other associated bank debts such as overdraft fees. The check reporting companies are obligated to accurately list the debtor’s account as “$0″ balance or “discharged in bankruptcy.” But some debtors may still have trouble opening a bank account after their bankruptcy discharge due to inaccurate reporting by one or more check reporting companies such as Chex Systems, Telecheck and SCAN.  Here’s what you can do: …

… files bankruptcy, his/her bank accounts are not negatively impacted unless of course there are overdraft fees, bounced checks etc. that need to be paid.  But there are some cases where a bank account may be affected by bankruptcy.

Is your bank also your creditor?  If a debtor files bankruptcy and has a bank account with one of his/her creditors, the bank may freeze the debtor’s bank account and request that the money be used to pay the outstanding debt.  Also, after a debtor files …

… It Works

Bank customers are often (with their knowledge) signed up for the most expensive “overdraft protection” option which can cost an average of $34 per overdraft, sometimes more than the amount of the original check/debit transaction.

It has been discovered that some banks are holding deposits longer than necessary and causing transactions such as check and debit purchases to go through before deposits are cleared. The result is that banks and credit unions are raking in …

… dollars by allowing regular checking/savings accounts customers overdraw their accounts with "overdraft protection" loans. This is one you will probably want to watch BEFORE you do your Xmas shopping.