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May 23 - overdraft fees are $17 billion a year.........banking cartel slow to make changes



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 1 month ago '09        #1
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messy marv stan  topics gone triple plat - Number 1 spot x85
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May 23 - overdraft fees are $17 billion a year.........banking cartel slow to make changes
 

 
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visit this link https://fortune.com/2022/ .. illion-a-year/


Over a decade since the Occupy Wall Street movement took over New York City’s financial district to protest banks’ greed and growing wealth inequality, Americans are actually paying less for their banking.

Last year, consumers spent about $305 billion in interest and fees related to financial products, down from $319 billion paid in 2020, according to the Financial Health Network’s FinHealth Spend Report 2022.

A big chunk of that comes from fees related to overdrafts. Overdraft revenues were roughly $40 billion in 2012 (after adjusting for inflation), according to economic research company Moebs Services. In 2021, banks, credit unions, community banks, and fintechs earned an estimated $33.4 billion.


The drop in overdraft fees accelerated during the COVID-19 pandemic, according to the FinHealth. And that's due, in part, to many banks shifting their policies to provide additional support to customers—particularly around fees like overdraft charges. Within the last year, more than a dozen banks announced overdraft reforms. Alliant Credit Union, Ally Bank, and Capital One all announced in 2021 they would end overdraft fees.

Starting this summer, Citibank will eliminate all its overdraft fees. Bank of America eliminated non-sufficient fund (NSF) fees in February and will lower its overdraft fees from $35 to $10 starting on May 24, 2022. Beginning in July, Huntington Bank will cut its overdraft and NSF fees from $36 to $15.

Meanwhile, Chase, Wells Fargo, Regions, Truist outlined plans to cut NSF fees and implement other limits on overdraft charges. U.S. Bank will halt NSF charges and provide a day grace period for overdraft fees

While the scope of the changes varies from bank to bank, the reforms add up to real money—approximately $5 billion a year so far, says Aaron Klein, a senior fellow in economic studies at the Brookings Institution.

“It's great that a lot of large financial institutions are making a move away from fee-based overdraft for their customers,” says Peter Smith, a senior researcher for the left-leaning Center for Responsible Lending who’s focused on overdraft practices.

But Smith doesn’t see a few large banks changing their fees as sufficient. Especially given that nearly 18% of consumers with a bank account reported overdrafting in December, according to a survey from Morning Consult.

Not all of those consumers are banking with one of the institutions overhauling their policies, and overdraft practices are so widespread—credit unions and community banks also levy these fees. Instead, Smith and others believe that federal regulation or legislation is needed to ensure a level playing field.

If every bank and credit union made changes that reduced their overdraft revenue by about 60%, savings for consumers would exceed $17 billion, Klein testified during a recent Senate hearing. “However…that is unlikely absent regulatory or legal changes given how dependent some institutions are on overdraft for their business.”
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 1 month ago '17        #2
Iceberg HISTORY  topics gone triple plat - Number 1 spot x192
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This is not the banks fault that people buy sh*t that they can't afford
Miss me with this bullsh*t victimhood
People's problems are always someone elses fault right?
Same thing people bi*ching about the government and insurance on medical prices, no one told you to eat 5 burgers, 3 shakes, and 17 pounds of fries a week while you smoke.
People, especially women, want to be kids forever so that they have no accountability.
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 1 month ago '17        #3
Ifeellikekobe  topics gone triple plat - Number 1 spot x7
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 Iceberg HISTORY said
This is not the banks fault that people buy sh*t that they can't afford
Miss me with this bullsh*t victimhood
People's problems are always someone elses fault right?
Same thing people bi*ching about the government and insurance on medical prices, no one told you to eat 5 burgers, 3 shakes, and 17 pounds of fries a week while you smoke.
People, especially women, want to be kids forever so that they have no accountability.
So this he-man woman hater thinks only women are over drafting accounts

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 1 month ago '17        #4
Iceberg HISTORY  topics gone triple plat - Number 1 spot x192
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 Ifeellikekobe said
So this he-man woman hater thinks only women are over drafting accounts

You a victim minded a*s n*gga and all you do is cry
fu*k out of my thread
Go ahead and post a smiley to hide your pain
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 1 month ago '21        #5
Tlatoani  topics gone triple plat - Number 1 spot x1
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They already make money off of you by simply possessing your money.

The fees are greed, plain and simple.
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 1 month ago '19        #6
SuperPawgHunter  topics gone triple plat - Number 1 spot x9
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 Tlatoani said
They already make money off of you by simply possessing your money.

The fees are greed, plain and simple.
You do know the purpose of a business is to make as much money as possible .... right? Right?

There is certain greed that can be damaging, but charging people for mistakes they know not to make is fair game, as far as I'm concerned.
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 1 month ago '12        #7
5E8FW 
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 Tlatoani said
They already make money off of you by simply possessing your money.

The fees are greed, plain and simple.
Exactly. And they are not transparent about it. At least have a respectable gap of interest.

That's unethical. Penalize people for having money in the bank (shorting) and at the same time, penalize people for not having enough. And then get bailed out when they are sinking. My thoughts on it.
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 1 month ago '17        #8
Willy Boban  topics gone triple plat - Number 1 spot x10
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Nah fam. The banks sometimes will deny a payment but still charge you an overdraft fee everytime the company keeps trying to push the payment through. Which is what I have a problem with.

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 1 month ago '21        #9
Tlatoani  topics gone triple plat - Number 1 spot x1
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 SuperPawgHunter said
You do know the purpose of a business is to make as much money as possible .... right? Right?

There is certain greed that can be damaging, but charging people for mistakes they know not to make is fair game, as far as I'm concerned.
Banks should be a public good in the 21st century.

Americans shouldn't be forced to bank with predatory companies.

 1 month ago '22        #10
usafveteran  topics gone triple plat - Number 1 spot x3
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I’m starting a black owned bank, Boxden Federal

 1 month ago '14        #11
Sphynx 
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I worked at a Bank of America call center in college. That sh*t make you lose empathy for people with this overdraft sh*t

1. If you responsible with your account the bank will never make a dime off you. For two reasons. The first is that you won’t OD. Second is that on the rare or freak occasion that you might the bank will give you (depending on length of relationship and a*sets with the bank) up to like 4 OD fees back a year.

Problem is you got people who bad with money. They OD their account and call and you give them 2 fees back or whatever. Then they start thinking they can be irresponsible and just call the bank and beg for fees back every week. Nah, you used up your good will for the year already. And when you explain that they get mad

2. When you call the bank stop yelling at the poor college kid answering the phone about fees. They didn’t do sh*t to cause fees on your account. You did it all. I swear whenever people used to come at me crazy I would make sure not to give them sh*t back, even if the decision tool said yes

3. Believe it or not there’s people out there who willingly pay OD fees because they want to live outside their means. They too scared to tell their friends or significant other they don’t got the money to go out so they purposely overspend knowing they got bills coming in and say “I’ll just pay the fees from my next check” and they get caught in a cycle until the bank stops allowing them to OD and just starts cancelling transactions

4. Wasn’t uncommon for people to call in mad that the bank didn’t OD their account to push through their rent check, or car payment. After so many times you actually run out of rope and the bank just says no to essentially giving you those OD loans (that’s how people look at it) a small loan for $35 dollars

5. Stop trying to finesse payday loans and thinking them n*ggas won’t track you down and run you dry by over-drafting your account to try to get their money (seen that too many times)

Worst job, I ever had. Just dealing with the dumbest people call after call after call


Last edited by Sphynx; 05-23-2022 at 04:25 PM..
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 1 month ago '06        #12
damn_ryght 
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The rich get richer lezzz go

 1 month ago '11        #13
Joseph  topics gone triple plat - Number 1 spot x1
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I pretty much pay for everything with a credit card unless it's not accepted. I'm not surprised about this info though; most people live paycheck to paycheck.
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 1 month ago '14        #14
Maynard JKeenan 
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 Sphynx said
I worked at a Bank of America call center in college. That sh*t make you lose empathy for people with this overdraft sh*t

1. If you responsible with your account the bank will never make a dime off you. For two reasons. The first is that you won’t OD. Second is that on the rare or freak occasion that you might the bank will give you (depending on length of relationship and a*sets with the bank) up to like 4 OD fees back a year.

Problem is you got people who bad with money. They OD their account and call and you give them 2 fees back or whatever. Then they start thinking they can be irresponsible and just call the bank and beg for fees back every week. Nah, you used up your good will for the year already. And when you explain that they get mad

2. When you call the bank stop yelling at the poor college kid answering the phone about fees. They didn’t do sh*t to cause fees on your account. You did it all. I swear whenever people used to come at me crazy I would make sure not to give them sh*t back, even if the decision tool said yes

3. Believe it or not there’s people out there who willingly pay OD fees because they want to live outside their means. They too scared to tell their friends or significant other they don’t got the money to go out so they purposely overspend knowing they got bills coming in and say “I’ll just pay the fees from my next check” and they get caught in a cycle until the bank stops allowing them to OD and just starts cancelling transactions

4. Wasn’t uncommon for people to call in mad that the bank didn’t OD their account to push through their rent check, or car payment. After so many times you actually run out of rope and the bank just says no to essentially giving you those OD loans (that’s how people look at it) a small loan for $35 dollars

5. Stop trying to finesse payday loans and thinking them n*ggas won’t track you down and run you dry by over-drafting your account to try to get their money (seen that too many times)

Worst job, I ever had. Just dealing with the dumbest people call after call after call
I would agree with you except I remember a few occasions in my broke college days where the bank would intentionally rearrange the order of my pending transactions to make the most expensive one go through first, that way I would overdraft sooner and have to pay a separate fee for every transaction after that, rather that posting them in the order I made them which would result in only 1 overdraft fee.. shady practices like that are obviously done intentionally to maximize profits.


Last edited by Maynard JKeenan; 05-24-2022 at 03:56 AM..

 1 month ago '14        #15
Sphynx 
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 Maynard JKeenan said
I would agree with you except I remember a few occasions in my broke college days where the bank would internationally rearrange the order of my pending transactions to make the most expensive one go through first, that way I would overdraft sooner and have to pay a separate fee for every transaction after that, rather that posting them in the order I made them which would result in only 1 overdraft fee.. shady practices like that are obviously done intentionally to maximize profits.
I’m not here to take up for them (because they scumbags too) but I remember this discussion from when I worked there

The reason they do it is under the idea that typically the highest amount items are the most important. For most people the high amount things that overdraft their accounts are typically car note, house payment, student loan etc.

So they figure they should prioritize those first to help you out if you come up short even tho it may cause some additional fees. Would you rather have them put through your house payment first or a book you bought off Amazon and deny the house payment?

For every person who would call in cussing us out for putting the highest amounts first, there would be another calling to say “thank you, I forgot to move the money over for my car payment this month. I appreciate it and I’ll pay the $35 or $70 over their late fee and a credit hit”

Once again weird a*s job to have at like 19
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 1 month ago '18        #16
DUCEDUCE  topics gone triple plat - Number 1 spot x2
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 usafveteran said
I’m starting a black owned bank, Boxden Federal
sh*t going to have billions in capital with all the money boxden members make
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 1 month ago '06        #17
imthatinfamous  topics gone triple plat - Number 1 spot x1
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y'all going to blame banks for your lack of money management?

on a side note, as a Bank of America preferred member you get all fees and fines waived automatically



Last edited by imthatinfamous; 05-23-2022 at 09:58 PM..
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 1 month ago '04        #18
pimppoet 
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 Maynard JKeenan said
I would agree with you except I remember a few occasions in my broke college days where the bank would internationally rearrange the order of my pending transactions to make the most expensive one go through first, that way I would overdraft sooner and have to pay a separate fee for every transaction after that, rather that posting them in the order I made them which would result in only 1 overdraft fee.. shady practices like that are obviously done intentionally to maximize profits.

Most places these days post credits 1st then smallest debits by type. You have willing sign up for overdraft protection these days. I open and close account throughout years with various banks/credit union for sign up bonuses. Terms be right in front. People really dont like to read or balance account. Most overdraft fees are really non sufficient funds(nsf) fees from returned checks/ach debit they scheduled but didnt budget for. Most od fees I see are from subscription services mf too lazy/impatient to cancel like amazon or kids buying bs cuz lazy parent didnt get prepaid/app store purchase pin. They then make it worse on themselves by creating new emails and new amazon account for example instead of going through process to reset password for the original account. The worst are one that change phone number like socks cuz think they have to when they get new phone or always in drama.

 1 month ago '14        #19
strungout  topics gone triple plat - Number 1 spot x7
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 Iceberg HISTORY said
This is not the banks fault that people buy sh*t that they can't afford
Miss me with this bullsh*t victimhood
People's problems are always someone elses fault right?
Same thing people bi*ching about the government and insurance on medical prices, no one told you to eat 5 burgers, 3 shakes, and 17 pounds of fries a week while you smoke.
People, especially women, want to be kids forever so that they have no accountability.
Have you ever heard of a food dessert ?

This sh*t is systematic
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 1 month ago '22        #20
usafveteran  topics gone triple plat - Number 1 spot x3
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 DUCEDUCE said
sh*t going to have billions in capital with all the money boxden members make
I heard you can’t sign up for Boxden if you aren’t on the Forbes list!

 1 month ago '18        #21
DUCEDUCE  topics gone triple plat - Number 1 spot x2
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 usafveteran said
I heard you can’t sign up for Boxden if you aren’t on the Forbes list!


We got Crypto Millionaires, Trading millionaires, real estate millionaires, nft millionaires
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 1 month ago '04        #22
adthekidd 
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sh*t it highway robbery

if a person doen't have say $10 for example what makes you think charging them an extra $35 on top of that is ok ?
+1   

 1 month ago '22        #23
usafveteran  topics gone triple plat - Number 1 spot x3
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 DUCEDUCE said


We got Crypto Millionaires, Trading millionaires, real estate millionaires, nft millionaires
Yet still we all got stimmy’s somehow!

Must’ve been an accounting error!

 1 month ago '04        #24
collegeboy58 
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 adthekidd said
sh*t it highway robbery

if a person doen't have say $10 for example what makes you think charging them an extra $35 on top of that is ok ?
I always looked at it as a way to deter people from over drafting their account. I’m not the best with money and I learned in college to stop over drafting my account. You knew before you swiped your card or wrote the check that you didn’t have the money. If you’ve ever been then recipient of a bad check, you understand the frustration.

 1 month ago '04        #25
adthekidd 
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 collegeboy58 said
I always looked at it as a way to deter people from over drafting their account. I’m not the best with money and I learned in college to stop over drafting my account. You knew before you swiped your card or wrote the check that you didn’t have the money. If you’ve ever been then recipient of a bad check, you understand the frustration.
In that situation I understand but i mean more like bills

with random subscriptions left and right i can see how some ppl forget they have a bill coming up or w.e

Of course we all gotta be more responsible and keep up with sh*t though but i see both sides



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