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Congress eyes big overdraft fees
A pedestrian walks by a Citibank branch office in San Francisco, Calif.
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As a merchant *I* am charged by the bank a $5 fee if I *DEPOSIT* a customer's check that bounces.
Not only am I not getting paid because of a bad check, I'm losing even more money because of a bank fee! I'm being robbed twice!
The banks have this game rigged heavily in their favor. And when the banks screw up we *all* are stuck with the bill.
I'm all for any increased penalties, reform, regulation and criminal charges brought against banks.
It's come to the point where I prefer cash only and to put as little of it as possible in *any* bank. I'll stuff it under my mattress instead. If I get robbed at least I'll be robbed honestly and not "feed" to death by a bank.
I wanted to comment on the story this morning (Thursday, Oct. 1) regarding overdraft fees. I have been listening to these stories on several news channels over the last few weeks and am surprised by the fact that very little is said regarding personal responsibility and accountability. 1. Overdraft protection protects the consumer by allowing the customer to overdraw their account in order to avoid having a check returned to a merchant. This can save the customer money and avoid embarrassment, as a check returned to a merchant can also incur fees in addition to the ones charged by the bank. 2. Regarding the practice of paying the larger items first and then charging for paying all of the smaller items, not much to defend there; however, there is still another side of the story. Usually large amounts are for large purchases or rent or mortgage payments, and by paying the larger items first, this can also help the consumer. I would rather deal with the grocery store than my mortgage holder. 3. But the bottom line in this whole discussion is that no one is talking about the consumer's responsibility to manage their money and live within their means. How is it the bank's fault if a consumer overdraws their account? If you want to avoid overdraft fees and insufficient funds fees, then don't spend more than you have. It's that simple. I'm not necessarily defending the banks' practices, in fact there is plenty about which to complain, but let's not forget that there are consequences to our behavior, and that we are accountable.
