4 Tips to Outsmart the Aggravations of Overdraft Charges
06/08/2009Would you ever intend to pay $30 for a Cup of Coffee?
I know it seems like a ridiculous question to ask you. But what if you were tricked or trapped into paying $30 for a cup of coffee as a result of your Banks Overdraft fee’s?
Did you know that Banks are estimated to earn 40 Billion Dollars in Overdraft Fee’s yearly?
Warning: What you see in this video may shock you.
Is Your Bank striking it rich by strangling your income?
IF you’re suffering through the frustrating task of reorganizing your budget, it may NOT be due to financial mismanagement on your behalf. Let’s face the hard-core facts. It may be due to high Overdraft Fee’s.
Did you hear that Bank of America has won an appeal in the California Supreme Court enforcing their Fee’s? The Unanimous Ruling over-turned a lower Court Class Action Lawsuit. This recent Ruling overturns a Class-Action Lawsuit brought by Bank Customers depending on Social Security for income.
Various and Nefarious Overdraft Fee’s
I don’t have time to go into all of the various Fee’s. But rest assured, these fee’s numerous, nefarious and can drive you into Bankruptcy if you’re not careful. That’s why if you’ve skimmed this posting without watching the video, I encourage you to watch it. It’s from our Allies at Americans for Fairness in Lending.
Overdraft Fee’s by Banks can cost you up to 20% of your monthly income.
What can you do to avoid high Bank Overdraft Fee’s?
As promised in the title, below are four tips to help you avoid the aggravations of Overdraft Charges:
- Consider joining a Credit Union: You can find your nearest Credit Union by using the “Find a Credit Union Web page” at the National Credit Union Association.
- Remember that Banks normally process the largest charges first: Banks say that their aim is to protect their Customers by not allowing an important payment (rent, mortgage etc) from bouncing. But many Consumer Advocates (like Debt Warriors!™) disagree.
- Keep a close watch on your Bank Accounts: For one, it’s illegal for a person to ‘Float’ a check. Floating checks is also known as “Kitting’ and you don’t want to be accused of doing something illegal. If you don’t have the money in your Checking Account to cover the check or debit transaction, please don’t attempt to charge it to your account?
- Be Aware that Banks are Suspected of Holding Customers Checks until the checks bounce: Have you ever had a Check bounce – that shouldn’t have? Have you ever been frustrated because you knew you had the money to cover the check when it bounced? If so, you may have suffered through the aggravations of your Bank Floating your checks.I did an article on this last January about my experience with my old bank. I also highlight 7 steps to challenge when you suspect your Bank is floating your checks.
I hope that you haven’t had to deal with the tragedy of Overdraft Fee’s recently. But if you have, you should know that you’re not alone and it may not be entirely your fault. Bank Fee’s are one of the major causes of financial trouble in America.
