Evil Banks make profits on DUmmies stupidity.

[thundley4]

babsbunny   (1000+ posts)           Sun Aug-09-09 09:09 PM
Original message
Banks make $38bn from overdraft fees
   

 
http://www.ft.com/cms/s/0/43d18c68-851d-11de-9a64-00144...

By Saskia Scholtes and Francesco Guerrera in New York

Published: August 9 2009 22:52 | Last updated: August 9 2009 22:52

US banks stand to collect a record $38.5bn in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s, according to research. The fees are nearly double those reported in 2000.

The finding is likely to increase public hostility towards the financial sector, which has been under political pressure to ease the burden on consumers by increasing credit availability and lending more fairly after being bailed out by taxpayers.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6262873

bbinacan   (1000+ posts)           Sun Aug-09-09 09:11 PM
Response to Original message
1. Solution
   
Don't write a bad check.

How dare you advocate personal responsibility. You must be a freeper troll.

RB TexLa   (1000+ posts)           Sun Aug-09-09 10:48 PM
Response to Reply #6
34. What does living paycheck to paycheck have to do with either math skills or honesty?
   
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EFerrari   (1000+ posts)             Sun Aug-09-09 11:08 PM
Response to Reply #34
43. It means you don't have $500 in your account to buffer against a human error
   
on your part or against the predation of your bank rigging your account to go red.

It's long past the days when just good math skills and honesty would keep your account in the black. Billions of dollars of long past those days. That's how these people make their money now.

$500 to cover for human error?  More like Beth level stupidity.

EFerrari   (1000+ posts)             Sun Aug-09-09 10:05 PM
Response to Reply #1
13. You don't have to write a bad check. These banks rearrange
   
Edited on Sun Aug-09-09 10:05 PM by EFerrari
the order of the entries and bingo, you're overdrawn.

When I was doing accounting for a few small businesses, we called that cooking the books.

But nice going blaming the victims of this practice.

You libs know all about rewriting history, don't you?

[franksolich]

EFerrari   (1000+ posts)             Sun Aug-09-09 10:05 PM
Response to Reply #1

13.....When I was doing accounting for a few small businesses, we called that cooking the books......

One wonders what mischief Doug's stupid ex-wife was doing with that.

[BadCat]

Really.

I get the impression she has a hard time calculating the number of shoes to wear in the morning.

[thundley4]

One wonders what mischief Doug's stupid ex-wife was doing with that.

Is she admitting to criminal activity?   I'd be willing to bet that banks have laws governing how deposits and debits are credited/charged to accounts.  Even credit unions have federal laws governing them.

[USA4ME]

EFerrari

You don't have to write a bad check. These banks rearrange the order of the entries and bingo, you're overdrawn.

Liar.  All banks are required to post deposits before posting withdrawls when totaling up the days events.

.

[GOBUCKS]

One wonders what mischief Doug's stupid ex-wife was doing with that.

I doubt any mischief beyond the lie she just told. No one could possibly have hired poor stupid Beth to work on their books.

It's long past the days when just good math skills and honesty would keep your account in the black.

I'd like DUmmy Beth, the stupidest person on all the internets, to explain how a checking account goes into the red without a math mistake, or, less often, a case of dishonesty. Lots of people make math mistakes. DUmmies try to scam the bank with check kiting, and are furious when an overdraft charge shows up.

[terry]

Liar.  All banks are required to post deposits before posting withdrawls when totaling up the days events.

.

I know that at one time a bank here had a sorting process for checks and withdrawals at the end of the day, that sorted them from the highest to the lowest.   If you had a whole bunch of little things and one big thing, the big thing would go first and over draw the account, then you would get dinged another overdraft fee for each little item that came after.  If all the little things had gone first, they would have all cleared and the only overdraft fee would be for the big thing.

It still could all be avoided by not writing checks for or withdrawing more than you actually have in the bank.

[Karin]

Terry, I didn't know they did that.  Check kiting and floating is not really part of my world, so this is new to me.  It sounds pretty scummy.  Is it a wide-spread practice? 

[terry]

Terry, I didn't know they did that.  Check kiting and floating is not really part of my world, so this is new to me.  It sounds pretty scummy.  Is it a wide-spread practice? 

I don't know.  I don't know if they even still do it.  I had a friend in the IT department for Mellon Bank, several years ago.  He told me about it.

It probably depends on the bank. 

My dh and I own a small business and bank at a small community bank.  They know us and call us personally if they think there are any problems.  The bigger national banks are probably going to try to get you any legal way they can... but you don't have to bank with them.