They called it the “$39 cup of coffee.” At many banks, customers were automatically — often unwittingly — enrolled in overdraft programs that would permit debit purchases to go through even if it would overdraw their account, to the tune of up to $35 a pop. But a year and a half after new Federal Reserve rules kicked in to protect …
overdraft fees
Teen Slapped With Hundreds in Bank Fees
Chicagoland teenager Daniel Ganziano thought he was doing the right thing when he opened an account last year with TCF Bank near his Illinois home to learn how to handle money responsibly. Instead, Ganziano learned that bank fees can very quickly spiral out of control — in his case, to more than $229 in less than two weeks.
Why Many Banks Don’t Want Your Money
It’s been well-documented that consumer spending is down. Some consumers are spending less, quite simply, because they’re among the many members of the middle-class who suddenly find themselves with less money to spend. Others …
A Bank Account for Teens—That’s Custom-Made for Helicopter Parents
The online bank ING Direct is introducing a new debit card and e-banking account designed specifically for teenagers. But considering how the product works—daily spending is limited, there’s no possibility of overdrafts, and …
Banks Waive Fees For Hurricane Irene Victims
Americans along the East Coast, especially in the Northeast, are still grappling with the aftereffects of Hurricane Irene. Many have no power and a smaller number have been displaced from their homes or are trapped by washed-out …
Customers Fight Back Against Overdraft Fee Tricks
A judge recently granted class-action status to a group of consumers who filed a lawsuit against Union Bank, claiming the San Francisco-based institution manipulated the order of transactions in order to maximize overdraft fees. Consumer advocates say that if the consumers prevail, it will send a strong message to other banks that they …
Why Your Checking Account Is Getting More Expensive
Long the workhorse of the financial mainstream, the checking account has undergone a radical evolution in recent months. Banks are shifting to the business model embraced by airlines, unbundling a product and adding fees on an a …
A Bank Heist, Committed by the Banks
Bank customers don’t like fees. Early on during the debate over reforming debit card overdraft programs—in which a customer was charged $30 or $35 for swiping a card that lacked enough funds to cover the bill—a survey was conducted to see how many people would prefer that such a transaction would be declined, so long as no fee was …
Five Questions. Also: Five Answers
Including: What’s the downside of going cash only? And: Should a restaurant tip be based on the amount before or after taxes?
