Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Chase and Bank of America Revise Overdraft Fee Policies

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
rmp yellow Donating Member (136 posts) Send PM | Profile | Ignore Tue Sep-22-09 08:12 PM
Original message
Chase and Bank of America Revise Overdraft Fee Policies
Source: New York Times

September 23, 2009

Bank of America and JPMorgan Chase, two of the nations biggest banks, announced plans on Tuesday to drastically overhaul their debit card programs by lowering or eliminating fees, changing the way they credit transactions and allowing customers to opt out of overdraft protection.

The moves come as lawmakers and regulators in Washington push proposals to reform what critics say are excessive charges of which consumers are unaware. The penalties, known as overdraft fees, bring the banking industry tens of billions of dollars in revenue annually.

Bank of America said it would allow current customers to turn off the ability to spend when their account hits zero, starting Oct. 19. Next June, the bank plans to limit the number of times each year that current customers can overdraw their accounts when using a debit card at a store. It will let new customers choose whether they want overdraft protection when they are opening their account.

Chase plans to eliminate by the first quarter of next year a common industry practice that enraged many consumers. Instead of lumping a days worth of debit card and A.T.M. transactions together and then processing the highest amounts first a practice that has caused large numbers of consumers to overdraw more quickly and pay more fees it will credit the transactions chronologically. Chase also plans to allow customers to opt out of overdraft coverage.

Read more: http://www.nytimes.com/2009/09/23/your-money/credit-and...



Good.
Printer Friendly | Permalink |  | Top
imdjh Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:14 PM
Response to Original message
1. Damn I'm getting old. I'm sitting here wondering what the sleazy catch is. nt
Printer Friendly | Permalink |  | Top
 
mike_c Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:17 PM
Response to Reply #1
3. you weren't born yesterday...
...and there is BOUND to be a catch!
Printer Friendly | Permalink |  | Top
 
Skittles Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:18 PM
Response to Reply #1
4. not a geriatric symtom, imdjh
we are so used to banks fucking the people it's what we all expect
Printer Friendly | Permalink |  | Top
 
customerserviceguy Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:19 PM
Response to Reply #1
5. They know they're pissing off customers
I'm almost done with my B of A credit card, just have about $500 to pay off, and they're kicked to the curb. My Chase card was at a zero balance, but I decided to buy that case of wine a couple of weeks ago from a local producer that didn't take my Amex. I intend to pay that off before Chase can make a dime of interest off of me.
Printer Friendly | Permalink |  | Top
 
regnaD kciN Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:21 PM
Response to Reply #1
8. Yep, I'm waiting for the other shoe to drop, too...
Fortunately, I moved my accounts to a credit union after Chase gobbled up the remains of WaMu (handed to them on a silver platter by Bush's Treasury Department).
Printer Friendly | Permalink |  | Top
 
jobycom Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 09:02 PM
Response to Reply #1
14. They are trying to avoid the Congressional regulations Obama threatened them with.
That's the reason. Their policies under Bush were completely unregulated, so they stole as much money as they could. Obama the other day announced they were going to look into banking abuses, especially overdraft fees. So Chase and BoA are trying a preemptive change to head of legislation, so they can still keep as many of their criminal methods as they can. And so they can go back to the old ways as soon as Obama gets distracted, rather than having to fight a federal law. A fight that would bring them bad publicity, too.
Printer Friendly | Permalink |  | Top
 
DCKit Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 11:59 PM
Response to Reply #1
22. They're terrified of regulation. That's the catch.
So terrified, in fact, that they're willing to forgo billions in profits every year to head off new laws and regulations.
Printer Friendly | Permalink |  | Top
 
Gormy Cuss Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:17 PM
Response to Original message
2. "allowing customers to opt out of overdraft protection..." Awfully big of them.
Jerks. All of these revisions are just resetting the rules to what used to be the way things were done before they became slap-happy with fee generation.
Printer Friendly | Permalink |  | Top
 
mike_c Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:19 PM
Response to Reply #2
6. I've never understood how it can be "overdraft protection..."
Edited on Tue Sep-22-09 08:20 PM by mike_c
...if it indeed triggers both an overdraft, i.e. payment of funds that are not actually in the account, and overdraft fees to pay for the "service." That sounds more like "overdraft bait."
Printer Friendly | Permalink |  | Top
 
Gormy Cuss Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:26 PM
Response to Reply #6
10. I had overdraft protection for years, fee free.
That's what some banks used to call it when you could link a savings account. If there were insufficient funds in the checking account the money was automatically taken from the savings accounts, no fee applied. Now that was protection.

This newer version is doublespeak.
Printer Friendly | Permalink |  | Top
 
anonymous171 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:20 PM
Response to Original message
7. Good. Now they can't legally rob me anymore. nt
Printer Friendly | Permalink |  | Top
 
regnaD kciN Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:22 PM
Response to Reply #7
9. Oh, I'm sure they'll find a new way, somehow...
I'd watch for increased monthly fees and/or a charge to speak to an actual human being, instead of doing all your banking via phone, web, and ATM.

Printer Friendly | Permalink |  | Top
 
jtrockville Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:42 PM
Response to Original message
11. I dumped BOA earlier this year. Even with this news, I'm STILL glad.
A local bank (Presidential) suits me fine.
http://presidential.com

Can't say I miss 'ya BOA.
:p
Printer Friendly | Permalink |  | Top
 
jobycom Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:58 PM
Response to Reply #11
13. I dumped Chase, too, for exactly the reasons listed in the story.
They hit me with three overdraft fees in one day when they cleared a large check that put me over my limit and then cleared two smaller checks behind it. $35 a piece, that's $105 instead of $35.

The worst part is the only reason any of the three bounced was because they put a one day automatic hold on my paycheck. I was with WaMu, so I wound up with Chase when they bought my bank. The first time I heard about their automatic hold policy was when I was complaining about them costing me $105. I told them "You are going to lose a lot of customers over this," and the "customer service" (in this case "service" seems to have had the same meaning as "screw") person read a scripted answer that said "We are aware that many former Washington Mutual customers will be unhappy with this policy."

In other words, "fuck you, what are you going to do about it?"

I switched banks, but they got more money from me than I've ever lost at gunpoint for about a week's worth of banking.
Printer Friendly | Permalink |  | Top
 
Mithreal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 09:02 PM
Response to Reply #13
15. We switched over to a credit union. Hoping more will do the same. nt
Printer Friendly | Permalink |  | Top
 
jobycom Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 09:08 PM
Response to Reply #15
16. I switched back to a credit union, but the CU was worse when I first went to WaMu.
The credit union I used was worse than Washington Mutual four years ago when I changed. They charged for teller transactions, for banking, and they charged $39 for overdrafts--something I avoid but it happens. And they had the slowest and rudest tellers I'd ever seen. Wamu charged for none of that, and their OD fees were $25.

Since I never closed my CU account, I checked them out first when I wanted to drop Chase, and they had greatly changed their policies. So NOW they are better. But not all are, not by a long shot.

Printer Friendly | Permalink |  | Top
 
Mithreal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 10:21 PM
Response to Reply #16
21. Now's the time to shop around. My CU is giving 3.5% interest on checking
accounts to 10k and another credit union in town has no limit and gives, unless I misremember 2.25% interest on checking accounts with no limit. The fees are in some cases zero and in others much less than WaMu, now Chase. All the new Chase signs in town are quite an assault and I have a lot of negative emotions toward Chase.

Enough of us take our business elsewhere, we have a chance to curb their zeal.

Anyone else reading this, bank responsibly please and thanks.
Printer Friendly | Permalink |  | Top
 
msongs Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 08:51 PM
Response to Original message
12. just outlaw overdrafts - ppl oughta learn how to add and subtract lol nt
Printer Friendly | Permalink |  | Top
 
wroberts189 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 09:12 PM
Response to Reply #12
18. It is true yes ...but I have to say can be difficult with a significant other...

and the fast pace of bills.. online payments etc.


I do not think the high penalties are fair... charge me 5 bucks not 40.
Printer Friendly | Permalink |  | Top
 
RantinRavin Donating Member (423 posts) Send PM | Profile | Ignore Tue Sep-22-09 09:11 PM
Response to Original message
17. And how long until we hear people complaining
they couldn't buy medicine or food because the bank declined their purchase ?
Printer Friendly | Permalink |  | Top
 
momrois Donating Member (55 posts) Send PM | Profile | Ignore Tue Sep-22-09 09:22 PM
Response to Original message
19. Bank of America also has another new policy
At least it's new to me. My son overdrew his student account when they automatically withdrew a BofA credit card payment, unbeknownst to either of us, on the second of the month. He couldn't get his tipout at work until the 9th. They not only charged him the overdraft fee of $35, they charged him an additional $35 because his account was overdrawn for five days.

Thieving Bastards!
Printer Friendly | Permalink |  | Top
 
booksenkatz Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-22-09 10:07 PM
Response to Original message
20. Please remain in position while they change orifices. Your cooperation is appreciated.
They're gonna get their money... they may change methods, but don't be fooled. The screwing will continue as usual!
Printer Friendly | Permalink |  | Top
 
SOS Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-23-09 10:51 AM
Response to Original message
23. Hopefully, other banks will follow suit
I can't wait to walk in to my bank and tell that troglodyte manager: "Get that scam off my account NOW!"
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Tue Sep 30th 2014, 01:23 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC