Bank Fees are More Outrageous than Ever

Even when having one of the best of days, there are certain little things that can just put a damper on your joy. Some things in this category that come immediately to mind include: finding a soggy newspaper on your porch that wasn’t properly wrapped in plastic, realizing that you are all out of coffee or milk at breakfast time, or being stuck driving behind a super-slow dump truck that is tossing little bits of trash right at your windshield. Come on, admit it: you’ve been there, too!

But, here is one that has become not just an occasional annoyance but a downright nuisance for many, many people: outrageous bank fees. And one of the most common type of bank fees these days is the overdraft fee. This is the fee you pay when you make a charge against your account that exceeds the amount in your account at the time.

Overdraft fees are a particularly frustrating type of bank fee because they can seem to sneak up on you, even when you feel you are being careful about your spending habits. Overdraft fees would be bearable if it were not for the fact that they are costly (up to $35 in the case of many national banks) and that they happen too frequently (in many cases, several times per month).

If you agree that bank fees are more outrageous than ever, turn your anger into power! Here is some useful information about overdraft fees and what to do about them.

Why They’ve Gotten Worse

Bank fees such as overdraft fees are getting more and more attention in the media in recent years due three major trends:

1. Confusing online bank statements: You may have noticed that your online bank statement is not as easy to understand as you might like. Banks can do tricky things to make statements hard to read (too many to explain here). The result is that, in essence, the current balance you see may not be what is actually in the account and available to you right now. Translation: it’s easy to make an extra charge on the card because you believe there is more money in the account than there actually is.
2. Overdraft protection programs: These programs cover your “bad checks” and debit card charges that bring your account over the limit, but then they charge you a hefty fee for the service.
3. Debit cards: Debit cards, when connected to an overdraft protection checking account, can be charged even when your account balance is zero. That means you can do a day of shopping, come home, and realize you just made 3 or 4 purchases with your debit card – even though your balance was already at zero. The fact that your bank didn’t reject the charge when you were at the merchant’s store or restaurant tells you what the bank’s motive is: to make more profits in the form of overdraft fees.

Make no mistake: banks are profiting from these trends (to the tune of $26 billion per year in overdraft fees alone), so do not be surprised if they are in no hurry to fix the status quo.

How to Fight The Fees

You can protest overdraft fees, although winning the battle is not easy. If you do try to contest a recent fee, be sure to get your facts straight before your call. And, be polite: you catch more flies with honey than with vinegar!

What To Do If You Don’t Want to Fight Anymore

Most of us are just too busy to want to fight with our banks: after all, our time is valuable. If this describes you, instead of fighting your bank, just quit them. You can find banks that do not charge overdraft fees, even when you overdraw your account. There are not many of these banks, but they are definitely out there. And, they are worth looking for, especially if you believe that bank fees are more outrageous than ever.