The $36 soda: Overdrafting in America
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The $36 soda: Overdrafting in America
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Re: The $36 soda: Overdrafting in America
#2I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value.
One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to make s single overdraft.
Suntrust had other plans. They took out the large grocery bill first, meaning a quick lunch at Taco Bell cost over $40, shipping a small box cost over $50, and a Slim Jim and cream soda cost almost $40. In addition to the overdraft on the groceries.
It's a very easy trap to fall into if you're living check to check and make even the slightest mistake.
Re: The $36 soda: Overdrafting in America
#3I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
All the banks do this. They treat overdrafting as a way to make money rather than as a "service" for consumers (which is how they present it), and the way to do that is to ensure they charge as many overdraft fees as possible.
Re: The $36 soda: Overdrafting in America
#4I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
Yes, most banks do this now as a way to take advantage of their customers and generate more revenue. I had it happen once on a road trip -- you know, the type where you stop frequently and purchase $2-$3 of junk food or drinks all the time -- and ended up with hundreds of dollars in overdrafts on what would have actually only been about $20 of overdraft.
Several banks are being sued at the moment in class action suits for this behavior if I recall correctly. It's an unfair tactic that takes advantage of customers.
Re: The $36 soda: Overdrafting in America
#5I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
Banks do this but they will easily reverse all but one of them if you call without even arguing. If you argue a bit, I think they would reverse even the legitimate one.
Re: The $36 soda: Overdrafting in America
#6I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
It's a very easy trap to fall into if you're living check to check and make even the slightest mistake.
In each such story online, I've heard a claim that they specifically have algorithms to maximize the penalty fees on these mistakes.
Its another instance of a practice that disproportionately affects the poor. Unless you're living paycheque to paycheque, you would never even bother looking into such niggling details.
Re: The $36 soda: Overdrafting in America
#7I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
This practice should be illegal, just like processing withdrawals before deposits is now illegal, which was also done to maximize overdraft fees (at least I'm pretty sure it's illegal now).
Our government needs to make it easier to switch to a different bank. Tons of people would leave these awful banks for credit unions and such if it was easy to do. I mean it's possible to switch banks, it's a big headache though. People just have too many other things to worry about right now to deal with headaches like that.
Re: The $36 soda: Overdrafting in America
#8I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
Which is why you shouldn't be using such a dangerous service when living check to check.
Go to a bank machine, inquire about your current balance, and then extract cash to make your purchases with.
Banks may be predatory with fees, but really it's your own responsibility to avoid this trap, and it's not even that hard to do. You can also join a credit union.
Re: The $36 soda: Overdrafting in America
#9I had an annoying run in with them. It happened because I didn't know Suntrust didn't take out charges in the order they occurred. They take out the largest charge first, and each charge as they decrease in value. One day I had had a few small charges, and realizing it was a week intl payday, I figured I'd run to the grocery store and make a large precise of groceries, to ensure I had food taken care of, expecting to…
Please tell me that you called them, or walked into the nearest branch, and demanded that they reverse all but one of the charges, and, either
(1) They agreed, or
(2) You promptly closed your account.
Re: The $36 soda: Overdrafting in America
#10For months after the new regulation my bank was giving me a screen when I logged on to online banking. It went something like this:
Recent Federal regulations require us to re-confirm your enrollment in this valuable service you'd previously been getting with your checking account.
[ YES! Please! ]
[ Remind me later ]