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(CNBC)   Capital One says it is ditching all consumer overdraft fees, giving up $150 million in annual revenues. In an unrelated story, it has announced it's heavy into unicorn fart futures, renewable vegan pixie dust, and the Brooklyn Bridge swaps market   (cnbc.com) divider line
    More: Unlikely, Bank, overdraft fees, retail banking customers, largest U.S. bank, rapid growth, policy change, Overdraft, hefty fee  
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259 clicks; posted to Business » on 01 Dec 2021 at 2:04 PM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



18 Comments     (+0 »)
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2021-12-01 1:12:22 PM  
I have a distant relative who, along with her husband, were working for the Federal Government (one as a contractor) when Trump got elected.

They shortly thereafter left those jobs and each is working for Capital One. A farking megabank is less evil than the Trump Administration.
 
2021-12-01 1:50:19 PM  
It's nice to see a rinky dink mom and pop outfit, holding barely $420 billion in assets, able to offer some of the nice perks provided by my local mega-credit union.
 
2021-12-01 2:06:40 PM  
If they are willing to give up $150 million in annual revenue, its because they figured out a different way to screw customers out of $200 million in annual revenue.
 
2021-12-01 2:11:01 PM  
As long as they aren't investing in NFT's this is a win.
 
2021-12-01 2:11:06 PM  

Dick Gozinya: If they are willing to give up $150 million in annual revenue, its because they figured out a different way to screw customers out of $200 million in annual revenue.


Or possibly seeing a loss of business to credit unions, who have often had policies like this for some time.
 
2021-12-01 2:16:13 PM  

Dick Gozinya: If they are willing to give up $150 million in annual revenue, its because they figured out a different way to screw customers out of $200 million in annual revenue.


Or that by dropping this fee revenues will increase more elsewhere. People who overdraft are likely going to have low credit scores, meaning you can charge higher interest rates on credit cards. Get them in you ecosystem and bleed them dry. Sure some will default but I'm sure they have forecasts for where that break even point is.
 
2021-12-01 2:20:27 PM  
Yeah, Capital One can waive overdraft fees, but I can tell you most places will charge you $25 - $30 for a returned check or EFT withdrawal.

It sucks when you don't have consistent revenue streams or are not financially savvy enough to understand what is happening to your money. I call these "idiot taxes" and my company earns millions of dollars on these idiot taxes every month.

Late fees. Returned payment fees. Reactivation fees. Pay by phone fees.

It's sad seeing accounts last due by $200 when they have $80 in late fees, $36 in reactivation fees, and $50 in returned payment fees. Now the poor bastard is stuck in a debt cycle that is damn near impossible to get out of, as they've probably already maxed out their credit cards by that point.

Live. Within. Your. Means.
 
2021-12-01 2:21:27 PM  
The world is changing. Blockbuster used to make good revenue on late fees. I'm guessing Capital One was looking at getting ahead of the curve with the younger folks who don't just accept these fees and will bank with the new online banking options. Evolve or die
 
2021-12-01 2:37:36 PM  
What's wrong with having pixie dust or Brooklyn Bridge swaps?  What's in your wallet?
 
2021-12-01 2:38:14 PM  
I'm a see this as the politics of business.


what is a recent topic about American banking?
and for sure that would cut into the bank revenue by far far more than just a 150 mil a year in ovedraft fees.

And no doubt, overdraft fees would play to the narrative about Americans needing an alteritive to free market banks.
So now that there are no overdraft fees to be talked about, surely the need for alternate banking is also gone?\
or at least that much harder to seem needed, i mean the nice trustworthy man at the bank said they would not overdraft me any more.
 
2021-12-01 3:43:09 PM  

baronbloodbath: Live. Within. Your. Means.


Go. F*ck. Your. Privileged. Self.

Lots of people can't do that, because living is f*cking expensive as sh*t, especially when you're poor.
 
2021-12-01 3:43:53 PM  
OK how f*cked up is it that they make money on overdraft fees? That should not be legal. Indeed, in other countries it isn't.
 
2021-12-01 3:47:10 PM  

austerity101: baronbloodbath: Live. Within. Your. Means.

Go. F*ck. Your. Privileged. Self.

Lots of people can't do that, because living is f*cking expensive as sh*t, especially when you're poor.


quickmeme.comView Full Size
 
2021-12-01 4:32:56 PM  

Dick Gozinya: If they are willing to give up $150 million in annual revenue, its because they figured out a different way to screw customers out of $200 million in annual revenue.


I'm old enough to remember when banks PAID you 5% interest on your savings account.

Thanks, St. Ronnie.

Assholes.
 
2021-12-01 5:32:41 PM  

Unobtanium: I have a distant relative who, along with her husband, were working for the Federal Government (one as a contractor) when Trump got elected.

They shortly thereafter left those jobs and each is working for Capital One. A farking megabank is less evil than the Trump Administration.


No, that's just the revolving door still.
 
2021-12-01 5:33:14 PM  

Flowery Twats: Dick Gozinya: If they are willing to give up $150 million in annual revenue, its because they figured out a different way to screw customers out of $200 million in annual revenue.

I'm old enough to remember when banks PAID you 5% interest on your savings account.

Thanks, St. Ronnie.

Assholes.


Oh man, most I remember was 3%.
 
2021-12-01 9:30:07 PM  
I keep thinking about how PNC Bank is loudly trumpeting from the hilltops that they have a special "low cash mode" that does a bunch of random shiat to help you avoid a costly overdraft fee.

Oh, if only there was some other way they could help you avoid a costly overdraft fee!
 
2021-12-02 7:49:25 AM  

Intrepid00: Flowery Twats: Dick Gozinya: If they are willing to give up $150 million in annual revenue, its because they figured out a different way to screw customers out of $200 million in annual revenue.

I'm old enough to remember when banks PAID you 5% interest on your savings account.

Thanks, St. Ronnie.

Assholes.

Oh man, most I remember was 3%.


I remember being dissuaded from getting a savings account for .5 interest.
 
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