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(Christian Science Monitor)   Chase Bank will eliminate overdraft fees on purchases under $5 beginning July 22nd. No word on whether your TotalFark subscription will be covered   (csmonitor.com) divider line 27
    More: Spiffy, JPMorgan Chase & Co., July 22nd, overdrafts, account balances, SunTrust, subscribers  
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635 clicks; posted to Business » on 15 Jul 2012 at 4:03 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



27 Comments   (+0 »)
   
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2012-07-15 03:39:24 PM
Like anything costs less than $5 these days
 
2012-07-15 03:59:57 PM
Only if Drew lowers the price, math-fail-mitter.
 
2012-07-15 04:07:07 PM
*charges $300 worth of amazon movie rentals in 1.99 increments*
 
2012-07-15 04:07:29 PM
Anyone happen to know the profit margin for overdraft fees? I believe it's something insane, like 10,000%.
 
2012-07-15 04:27:43 PM
Sweet, now all those times where I am in a situation where I do not get paid until tomorrow and I want a few forties to get me through the night should not big that big of a deal.
 
2012-07-15 04:34:14 PM
2.bp.blogspot.com

"Bank? Bank...bank...baaaaannnnk. Now don't tell me, Earthling. I know this one..."

/Federal Credit Union...that's the equation!!1!
 
2012-07-15 05:18:51 PM
Proof that American capitalism works. Thank you Chase!
 
2012-07-15 05:24:45 PM
If you're the type who constantly triggers overdraft fees that this would actually qualify as exciting news, you have bigger problems than a shiatty bank trying to rip you off.
 
2012-07-15 05:47:33 PM
Too little, too late.

/farking thieves
 
2012-07-15 06:27:27 PM

SmitetheRighteous: If you're the type who constantly triggers overdraft fees that this would actually qualify as exciting news, you have bigger problems than a shiatty bank trying to rip you off.


True, but having one less worry is nice.
I've heard several people complain about overdrafting $30 and the bank rearranging purchases to stack overdraft fees on as many small charges as they can turning that one overdraft into 5 or 6. If you are in the situation that you're overdrafting, chances are that $200 in fees is going to have disastrous effects on your already shiatty life.
I've talked about this with a friend in banking and he explained that it's not the bank trying to screw people, it's a software issue. Basically the computer likes to work largest to smallest when it divvies up at the end of the day.
This sounds like they're trying to find an easy solution to that problem without having to completely rework the software.
 
2012-07-15 06:41:24 PM

The My Little Pony Killer: Too little, too late.

/farking thieves


Here's a novel idea. Don't spend money you don't have.
 
2012-07-15 07:13:45 PM

sexy-fetus: I've talked about this with a friend in banking and he explained that it's not the bank trying to screw people, it's a software issue. Basically the computer likes to work largest to smallest when it divvies up at the end of the day.
This sounds like they're trying to find an easy solution to that problem without having to completely rework the software.


Chase already seems to reverse-stack with my account with them. The smallest purchases typically are batched first based on the date a debit card purchased it moved from pending to finalized.
 
2012-07-15 08:22:02 PM
The trick is that you have to opt-in to overdraft coverage in order to have this "benefit" by Chase. Similarly, Huntington Bank offers "24 hour grace" on overdrafts. But in order to have this you must opt-in to overdraft coverage.

If you opt out, you can't overdraw your account and the bank can't collect those fees from you.
 
2012-07-15 08:38:18 PM

sexy-fetus: SmitetheRighteous: If you're the type who constantly triggers overdraft fees that this would actually qualify as exciting news, you have bigger problems than a shiatty bank trying to rip you off.

True, but having one less worry is nice.
I've heard several people complain about overdrafting $30 and the bank rearranging purchases to stack overdraft fees on as many small charges as they can turning that one overdraft into 5 or 6. If you are in the situation that you're overdrafting, chances are that $200 in fees is going to have disastrous effects on your already shiatty life.
I've talked about this with a friend in banking and he explained that it's not the bank trying to screw people, it's a software issue. Basically the computer likes to work largest to smallest when it divvies up at the end of the day.
This sounds like they're trying to find an easy solution to that problem without having to completely rework the software.



Well, it's both. Some of the more corrupt banks asked their vendors to order withdraws that way, and to retrodact previously completed debiatcharges into the future, in order to maximize the number of overdrafts, so the vendors complied. When the vendors retooled their system to sell to other banks and institutions, it was already set up that way, and the vendors wanted more money to spend the time to rewrite it differently. The other banks were either too small to afford that or didn't really feel THAT honest; and so are going with it as-is. Because of this, debts smallest to largest followed by credits largest to smallest has now become a soft of de facto accounting standard because no one has the motivation to program it differently in the computer systems.

My old paper banking statements, I remember, had it just the opposite. All deposits were cleared followed by all debts, smallest to largest. In fact, if a check was deposited and, but for that, a check you had written to go out were to bounce, the bank would even optimistically give your check the benefit of the doubt so as to clear the outgoing check, and would only overdraft if the incoming check bounced. This was to preserve the propagation delay for floating checks. For example, if I deposited a check for $X and then went to the store and wrote a check for $X, the assumption would be that the clear time would be the same for both checks, so your check to the store would be held in stasis until the bank heard back from the deposited check, and then your check would be released. In fact, if there still wasn't enough money to clear a check at the end of the day, the bank would call you on the phone to ask if you didn't want to come in and deposit some cash real quick. Imagine that happening today.
 
2012-07-15 09:00:53 PM

Steven Rules: The My Little Pony Killer: Too little, too late.

/farking thieves

Here's a novel idea. Don't spend money you don't have.


Here's a novel idea. Making assumptions about other people usually makes an ass of someone, and it's usually not the person you're assuming things about.
 
2012-07-15 09:06:10 PM

Steven Rules: The My Little Pony Killer: Too little, too late.

/farking thieves

Here's a novel idea. Don't spend money you don't have.


That would put every bank in America out of business.
 
2012-07-15 09:55:36 PM

sexy-fetus: SmitetheRighteous: If you're the type who constantly triggers overdraft fees that this would actually qualify as exciting news, you have bigger problems than a shiatty bank trying to rip you off.

True, but having one less worry is nice.
I've heard several people complain about overdrafting $30 and the bank rearranging purchases to stack overdraft fees on as many small charges as they can turning that one overdraft into 5 or 6. If you are in the situation that you're overdrafting, chances are that $200 in fees is going to have disastrous effects on your already shiatty life.
I've talked about this with a friend in banking and he explained that it's not the bank trying to screw people, it's a software issue. Basically the computer likes to work largest to smallest when it divvies up at the end of the day.
This sounds like they're trying to find an easy solution to that problem without having to completely rework the software.


That is bullshiat. The original way it worked was time stamp order of posting. The software WAS changed, in 2001, to post them in that order. Chase did it first. I was working for them at the time, and it was stated to us, that we were not allowed to tell customers, but the change was made specifically to increase fees.
 
2012-07-15 10:02:27 PM

senzasord: The trick is that you have to opt-in to overdraft coverage in order to have this "benefit" by Chase. Similarly, Huntington Bank offers "24 hour grace" on overdrafts. But in order to have this you must opt-in to overdraft coverage.

If you opt out, you can't overdraw your account and the bank can't collect those fees from you.



wrong order, you must opt out of overdraft, and in fact, you COULDNT until the cc reform law passed this year.
 
2012-07-15 10:39:31 PM

AgonistAlex: senzasord: The trick is that you have to opt-in to overdraft coverage in order to have this "benefit" by Chase. Similarly, Huntington Bank offers "24 hour grace" on overdrafts. But in order to have this you must opt-in to overdraft coverage.

If you opt out, you can't overdraw your account and the bank can't collect those fees from you.


wrong order, you must opt out of overdraft, and in fact, you COULDNT until the cc reform law passed this year.



What you've said doesn't make much sense. But if I stretch to understand you, I'll point out that in 2010 after Dodd-Frank passed everyone with a checking account had to choose to opt-in or opt-out of overdraft coverage. With any new account the banker should ask if you'd like to have overdraft coverage. From that time banks have been trying to find ways to get customers to believe opting in is beneficial for them.

/ I used to work in banking. The overdraft coverage changes were a huge pain in the ass.
 
2012-07-15 11:00:06 PM

The My Little Pony Killer: Steven Rules: The My Little Pony Killer: Too little, too late.

/farking thieves

Here's a novel idea. Don't spend money you don't have.

Here's a novel idea. Making assumptions about other people usually makes an ass of someone, and it's usually not the person you're assuming things about.


Reminds me of an XKCD strip I saw...
 
2012-07-16 08:19:37 AM
There's at least one other bank removing overdraft fees on purchases of less than $5. I wonder if there's not a new regulation kicking in.

They also got rid of the "We're going to charge you a daily over-limit fee. Also, we're going to charge you an overdraft fee on the daily over-limit fee that we just charged you. Furthermore, even though we have your e-mail and a messaging system built into our online banking, we're going to notify you by mail. So it looks like that being $2 in the hole on Monday has turned into $333 by Friday. Oh, and when you check your statement, it's not going to show the pending overdraft fees we're getting ready to charge. So if you're down by $333, and you put in anything less than $360, you're going to be overdrawn tomorrow morning when we hit you with yesterday's over-limit fee."
 
2012-07-16 08:22:49 AM

Steven Rules: The My Little Pony Killer: Too little, too late.

/farking thieves

Here's a novel idea. Don't spend money you don't have.


That works great.
Except that many debit cards don't simply quit working when the associated account reaches zero.
Bend over, serf.
 
2012-07-16 08:27:00 AM

AgonistAlex: The software WAS changed, in 2001, to post them in that order. Chase did it first. I was working for them at the time, and it was stated to us, that we were not allowed to tell customers, but the change was made specifically to increase fees.


Wachovia got me once and I closed the account. My mathematical error cost me something like $350 in fees on seven small purchases totalling about $225 in items. The debit card continued to work after my account was empty. A package of fig newtons I bought for the kids cost me a little more than $34 bucks.

I went unbanked for a few years, then joined a credit union.
 
2012-07-16 09:50:29 AM
When chase bought Washington mutual, they instantly raised my credit card rates from 11% to 29%.

When I went in to close my account, they asked me why. I told them they were only one step up from bank of America.

/csb
 
2012-07-16 09:55:16 AM

sexy-fetus: SmitetheRighteous: If you're the type who constantly triggers overdraft fees that this would actually qualify as exciting news, you have bigger problems than a shiatty bank trying to rip you off.

True, but having one less worry is nice.
I've heard several people complain about overdrafting $30 and the bank rearranging purchases to stack overdraft fees on as many small charges as they can turning that one overdraft into 5 or 6. If you are in the situation that you're overdrafting, chances are that $200 in fees is going to have disastrous effects on your already shiatty life.
I've talked about this with a friend in banking and he explained that it's not the bank trying to screw people, it's a software issue. Basically the computer likes to work largest to smallest when it divvies up at the end of the day.
This sounds like they're trying to find an easy solution to that problem without having to completely rework the software.


Happened to me once, but new rules stop them from being able to do it. It's not a daily thing...they sat on small purchases for a day or 2 in order for the big one that was coming due to be processed first. Definitely wasn't a daily systems thing.

Still a nice move by Chase.
 
2012-07-16 10:43:12 AM

senzasord: The trick is that you have to opt-in to overdraft coverage in order to have this "benefit" by Chase. Similarly, Huntington Bank offers "24 hour grace" on overdrafts. But in order to have this you must opt-in to overdraft coverage.

If you opt out, you can't overdraw your account and the bank can't collect those fees from you.


This. I'd much rather be denied at the 7-11 than see one of those "overdraft protection racket" fees on my statement.
 
2012-07-16 06:08:32 PM
I had a problem with Pornstar Bank. They accepted my wife's deposit of my paycheck at my home branch, I took out $40 for fuel, and drove to the nearest branch to me (about 2 hours away). I went to cash my paycheck for my new job and was told I was overdrawn. That was an interesting phone call.
 
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