Banks figuring out new ways to put the screws to consumers
July 31, 2008 | alternatives | Comments (0)A KPRC Channel 2 investigative report out of Houston details how Bank of America is manipulating “pending” deposits and debits to charge customers overdraft fees.
Shelly Fisher knew she was running low in her account when she saw a pending automatic payment to TiVo.
A $10 check cleared, leaving her with less than $5 in the bank. She made a hefty deposit to make sure she never dipped below zero. But Bank of America still dinged her account with a $35 overdraft fee.
What happened? Bank of America said that “pending” transaction to Tivo “could have” made Shelly’s account overdrawn if it had been processed before she made that deposit.
“So, we’re going to be charged for hypothetical situations now?” Shelly said she asked the bank employee.
Ha — Zing! Good one, Shelly. But to answer your question, yes — hypotheticals are the newest form of revenue for banks. And even as the Payday Pundit types this, banks are trying to figure out a way to charge you fees for even thinking about using your own money. It will likely be called “The Anticipatory Finance Fee.” Even better than Shelly’s query to the bank is the American Banking Association’s response:
“The fees are very avoidable. It’s very easy to avoid overdrawing an account.”
It sure is, especially if you closely monitor your balance and be sure to make timely deposits if you’re running low… all of which Shelly Fisher did. Maybe the banking spokesperson is referring to some of the other “easy” ways to avoid overdrawing an account… which are apparently secret. Are we trapped in an Orwell novel?
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