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OT - Overdraft fees = $600


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I have a friend who is obviously, a terrible bookkeeper. Yep, he got overdrawn. Fees? $600, $28 at a time. Numerous charges came in for like $1.20, $1.40, and checks and stuff, etc. It's a biz account and he accepts credit cards and those small fees are for this and that. Anyway, yes, I know he screwed up and it's his fault. But he had a chargeback come through that was a total surprise, no warning. $600 is effin robbery. $600 is a LOT of money. After he complained, they refunded $100. I would have closed the account. I hate banks with a passion. I honestly do. It's a racket. Those OD fees are arbitrary. And 99% profit. A minimum wage worker handles that stuff.

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That's not all that unusual. I have a friend who had over $900 in overdraft fees (he has overdraft protection) because a check someone had written to him bounced about five days after he deposited it. The bank cashed it, showed it in his balance, he wrote a bunch of electronic payments, and then it bounced almost five days later, and the bank paid off his two biggest electronic drafts, putting the rest into overdraft protection when they went NSF -- incurring over $900 in fees (at $40 per O.D.)

 

That is pretty much S.O.P. now at most banks. Ten years ago I dropped a bank I'd been with for over 20 years because they did that to my tennant. I'd never heard of something like that. But now it's just the way they all do it.

 

Skanky, huh?

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My landlord once complained that my rent check arrived a day or two late (it was a weekend in-between holidays). I use and automatic-payment system with Quicken, so everything typically happens like clockwork. After he said this, I pushed up by a few days each month the date this would regularly happen.

 

The next month, he got the check five days early, and promptly cashed it. I was on the road, and when I returned I found four overdraft protection fees at $21 each. Neither the bank nor my landlord was impressed with my crying.

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theblue1 I had the same exact situation happen to me 12 years ago.

 

I was desperate for work and allowed myself to get sucked in to a vacuum cleaner sales position. (Pun intended. ;) ) The Amway, Cutco, etc. type of deal where they set up appointments for you to try and sell an overpriced, yet high quality, item by showing the customer why they can't live without it... regardless of their circumstances and ability to pay. Anyone can get credit, right? :rolleyes:

 

As you may imagine, my ethics didn't allow me to keep the job for long. Not surprisingly, the bonehead who managed the franchise bounced my last $500 paycheck.

 

Of course, the bank didn't bounce it right away. And even though I'd deposited the check in an ATM, it was 3 or 4 weeks before they returned it and debited my account pushing it several hundred dollars in the red. Then it was another week before they cut off my ATM access. So every time I took money out they hit me with another charge. I tried to explain the situtation and get them to compromise on the charges, but they refused. I refused to pay them anything and took my business elsewhere.

 

I never would have paid them back had it not been necessary to be free and clear when we bought our home. (For years my wife was the only name on our checking account because, when we moved to Nashville, the bank we'd used in Chicago did not do business in Tennessee. Were there branches of that bank here, we wouldn't have ever had to worry about it until the mortgage issue arose.

It's easiest to find me on Facebook. Neil Bergman

 

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Oh shoot... Doug's story reminded me that I forgot an important part of the story of what caused my pal's O.D.

 

It was a post dated check from his own bank's computer bill paying. They sent the check out early. The creditor got the check something like four days early -- four days before the check was dated -- and cashed it, two days before the automated deposit that would have made it good. (Keep in mind he'd scheduled the payment diretly into the banks bill paying system.)

 

The bank paid that and bounced all the very small checks (he does everything by check) he'd had out, running up his fees to the $900.

 

Sweet, huh?

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Oh shoot... Doug's story reminded me that I forgot an important part of the story of what caused my pal's O.D.

 

It was a post dated check from his own bank's computer bill paying. They sent the check out early. The creditor got the check something like four days early -- four days before the check was dated -- and cashed it, two days before the automated deposit that would have made it good. (Keep in mind he'd scheduled the payment diretly into the banks bill paying system.)

 

The bank paid that and bounced all the very small checks (he does everything by check) he'd had out, running up his fees to the $900.

 

Sweet, huh?

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